The allocation for the power division in the national budget for fiscal year 2025-26 is around 30 percent less than that of the previous fiscal year, while it has been nearly doubled for the energy and mineral resources division.
The government has decided to cut electricity production costs by approximately 10 percent in a bid to ease the burden of subsidies in the power sector, said Finance Adviser Dr Salehuddin Ahmed in his budget speech on 2 June.
"If the plan can be implemented, it is estimated that electricity subsidy of more than Tk 11,000 crore will be saved. We are reviewing the power purchase agreements and have taken the initiative to conduct energy audits to reduce the cost," he said.
The FY26 budget allocated Tk 37,000 crore in subsidies for the power sector, whereas it was Tk 40,000 crore last fiscal year before rising to Tk 62,000 crore in the revised budget, as the interim government paid most of the arrears.
