Dhaka, April 27 -- Finance authorities may go frugal on subsidy and incentive handouts in the new budget as the interim government walks a tightrope in making two ends meet in current domestic and global economic realities.

Officials say as the government is calculating a smaller outlay for the 2025-26 budget, slated for announcement on June 2, exporters also may see export-performance incentives squeeze a bit, as of the past.

In the outgoing fiscal budget, the total allocation for subsidies and incentives was Tk 1.03 trillion, which is 20 per cent of the total operating budget of Tk 5.155 trillion.

Finance Division officials say in the next budget the government may allocate a similar amount under the head of subsidies and incentives,...