Power and Energy sector has got an allocation of TK 19 thousand and 100 core as subsidy and cash loan in the proposed budget of FY-2019-20.
The power sector alone has got an allocation of TK 9,500 crore as cash loan while the energy sector has got an allocation of TK 9,600 crore as subsidy in the proposed budget.
Finance minister AHM Mustafa Kamal on yesterday has placed the proposed budget for the fiscal year of 2019-20 before the parliament. However, due to the physical illness of Kamal, the budget presentation was completed by the PM Sheikh Hasina.
The finance minister has proposed to allocate an accumulated amount of Tk 28,051 crore for the power and energy sector for the FY-2019-20 which is 5.84% higher than the total budget allocation of the outgoing fiscal year.
The proposed allocation for the country’s power and energy sector is roughly 5.36% of the total size of the national budget.
In the proposed budget Power Development Board (PDB) has got the allocation as a loan. The government does not provide subsidy to the power sector any more instead, the sector mostly gets the money as a loan nowadays.
However, the subsidy in the gas sector got doubled from Tk 4,500 (in the outgoing fiscal year) to Tk 9,600 crore in the proposed budget for FY-2019-20 which is likely inevitable due to the recent import of high priced LNG. The subsidy was much lower at TK 3,061 crore in FY-2017-18 and it was just TK 300 core in FY-2016-17. The subsidy in the gas sector is getting substantially higher every year than that of the previous ones for the last couple of years as the country is struggling with its reserve/supply and demand balance of gas.
The power division received Tk 26,065 crore in FY-2018-19, up from Tk 24,212 crore in 2017-18 and the energy and mineral resources division got Tk 1,986 crore, down from Tk 2,290 crore in the outgoing fiscal year.