The Centre for Policy Dialogue (CPD) has welcomed several renewable energy incentives proposed in Bangladesh’s FY2026-27 national budget but cautioned that continued fiscal advantages for fossil fuels could undermine the country’s long-term energy transition goals.
CPD Senior Research Associate Helen Mashiyat Preoty presented these observations in a paper titled “Proposed National Budget for FY2026-27: What is There for the Power and Energy Sector?” at a discussion held at the organization’s Dhanmondi office on Wednesday.
The session was chaired by CPD Research Director Khondaker Golam Moazzem.
The proposed budget allocates Tk 17,345 crore to the Ministry of Power, Energy and Mineral Resources, representing a modest 2.3% increase from the revised FY2025-26 budget. Of this amount, Tk 17,193 crore is allocated for development expenditure, while Tk 152 crore is designated for operational expenditure, which has increased by 7.8%.
However, CPD highlighted a concerning long-term trend: the ministry’s share of the national budget has steadily declined from 6.87% in FY2015-16 to 1.85% in FY2026-27.
The Power Division received Tk 14,996 crore, a 3.9% decrease from the revised allocation, while the Energy and Mineral Resources Division saw a significant 72% increase to Tk 2,349 crore, mainly due to higher development spending.
