Tk 9,000cr proposed as subsidy in Agriculture

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Dhaka, June 2: The government has raised Tk 9,000 crore as subsidy in the proposed budget for 2016-17 fiscal year compared to the actual subsidy of Tk 7,000 crore allocated in the revised budget in 2015-16 FY.

Finance Minister AMA Muhith on Thursday allocated Tk 13,678.85 crore for agricultural sector in the proposed budget for 2016-17 FY which was nearly Tk 2,537 crore more than the revised budget of 2015-16 FY.

Under the proposed allocation, the government has earmarked Tk 11,838.35 crore under the head of non-development expenditure and Tk 1,840.50 crore for development expenditure in the proposed budget for agriculture sector.

In 2015-16, the government earmarked Tk 12,703.55 crore for the agricultural sector, but it went down to Tk 11,142.57 crore in the revised budget.

To meet the expenditure on fertiliser and other agricultural inputs, the government has proposed Tk 9,000 crore as subsidies for agriculture sector. In 2015-16, the government has also allocated Tk 9,000 crore as subsidies for the sector, but in the revised budget it was slashed to Tk 7,000 crore.

Speaking on the proposed budget, Finance Minister AMA Muhith said, “in agriculture sector, initiatives have been taken to strengthen agriculture subsidy, provide low cost credit and high quality seeds, ensure availability of fertilizer, distribute agricultural input assistance cards, establish agricultural processing and marketing centres and diversify crops.”

In addition, management of these programmes has improved considerably. As a result, agricultural production has increased in real terms by 2.6 percent compared the last fiscal.

“Besides, we have taken initiative to transfer cash and other incentives directly to the farmers through mobile banking systems,” he added.