Government exchequer gasps under fiscal-pressure buildup as power-sector subsidy is projected to overshoot its budgetary mark in the current fiscal year (FY)-much of the burden stemming from overrated hiring of private plants.
The government had already disbursed Tk 320 billion during the first nine months (July-March) of FY2025-26, and the amount is likely to reach some Tk 430 billion at the fiscal yearend, Ministry of Finance (MoF) officials say.
With an estimated Tk 110 billion required to make up the gap for the remaining three months (April-June), the total subsidy requirement for the fiscal comes to nearly Tk 430 billion, says a senior MoF official.
Consequently, the finance ministry is finalizing a revised national budget substantially raising the power-sector allocation from its initial cap at Tk 370 billion, they say.
A major cause of the budget mismatch is an underestimation of fuel-import costs and persistent capacity charges paid to power producers against capacity not used.
