Dhaka, May 29 -- Despite a projected reduction in the overall budget for the fiscal year 2025-26, the government is expected to maintain a significant allocation for subsidies, with Tk 1,15,741 crore earmarked - nearly unchanged from the previous fiscal year.

In FY2024-25, the original subsidy allocation stood at Tk 1,15,000 crore but was later revised upwards to Tk 1,33,000 crore after the interim government cleared a substantial portion of outstanding dues across several sectors.

According to a draft prepared by the Ministry of Finance, the largest shares of the FY26 subsidy package will go to the power, fertiliser, and food sectors. Finance Adviser Dr Salehuddin Ahmed is scheduled to announce the national budget on 2 June.

Sources i...