Due to procuring fuel and fertilizer in extra price, the allotment in these two sectors has been increased to triple-fold. The government is allot more subsidies as the price of fuel oil and fertilizer increases. The abnormal price hike in fuel oil and fertilizer is the outcome of recent Russia-Ukraine war. As a result, the two concerned ministries have sent letter of allotment to Finance Division so that extra allotment is present in revised budget.

Due to the global price hike, the maximum allotment will be needed in agriculture sector in order to produce foods. The Ministry of Agriculture recently want allotment of Tk 30 thousand 247 crore. Already, Tk 16, 000 crore has been allotted in current budget and in the revised budget the allotment to Agriculture Ministry will set to Tk 46 thousand 247 crore.

Meanwhile, despite the current budget has no allotment for fuel oil, the Energy Ministry demanded extra allotment of Tk 19 thousand 358 crore in revised budget. The revised allotment in LNG import will be Tk 11 thousand crore. Allotment in this item was Tk 6,000 crore this year, and the ministry sent letter of allotment to the Finance Division for another 5,000 crore.

TCB demand increased to double: Government agency Trading Corporation of Bangladesh (TCB) has been selling soybean oil to the mass people in open market at Tk 110 per liter across the country. However, Tk 180 to 190 was needed to buy these oils. That means government is giving subsidy of Tk 75 per liter. Thus, government spends Tk 150 crore per month to procure 2 crore liters soybean oil.

Not only in soybean, but subsidy also has to be given in procuring pulses and sugar. In the upcoming holy month of ‘Ramadan,’ onions, chickpeas and dates will also be sold as subsidized products.

The Ministry of Commerce demanded allotment of Tk 4 thousand 220 crore in current 2022-23 fiscal year. In this regard senior secretary of Ministry of Commerce Tapan Kanti Ghosh said, “The demand was conveyed to the concerned authority in the beginning of the year. However, there are ups and downs in the demand due to price fluctuations.

He said a total of Tk 9,500 crore will be needed for the year to sell products in open market through TCB. A letter was sent to Ministry of Finance for allotting extra money of Tk 5,280 crore in the budget due to the price hike of daily essentials.

@The report was published on print and online versions of The Bangladesh Pratidin on December 19, 2022 and rewritten in English by Lutful Hoque