40% of the budget to be spent on subsidies, interest payments and incentives

In the upcoming calendar year, Bangladesh's Ministry of Finance plans to allocate Tk 3,14,700 crore from a budget of Tk 7,97,000 crore across three sectors. 40% of this budget will cover subsidies, interest payments, and government salaries. Pressure from the IMF is prompting a reduction in subsidies, though agricultural subsidies remain challenging to cut. Despite an increase in power sector subsidies to Tk 35,000 crore, interest payments have risen by 26% to Tk 60,555 crore. The new budget for 2024-25 aims for a 4.62% expenditure increase, totaling Tk 7,96,900 crore, with a revenue target of Tk 4,80,000 crore and a budget deficit of Tk 2,56,000 crore.