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Also, the government will have to increase rice procurement to save the farmers from incurring losses.

“That’s why the government is considering hiking the price of the items,” he said, adding that the final decision lies with Prime Minister Sheikh Hasina.

Different ministries are sending in requests for an additional subsidy -- and all are for hefty amounts -- to absorb the spiralling prices in the international markets.

The finance ministry is reviewing the proposals and will come up with a revised budget by March, according to another official.

It would not be possible for the government to allocate the subsidy that the ministries sought in their revised demand. But there will be some increase, they added.

For example, the power division in its proposal sought Tk 25,000 crore in subsidy to meet the rising energy costs. The amount allocated for subsidy in this budget is about Tk 9,000 crore, of which Tk 5,000 crore has been spent by December.

Now, the finance ministry is considering allocating an additional Tk 2,000-Tk 3,000 crore in subsidy, said another finance ministry official.

On the other hand, the energy division sought Tk 32,000 crore in subsidy if they are to meet the liquefied natural gas (LNG) import bills unless the government increases the price.

While a subsidy of Tk 6,000 crore has been set aside for LNG in this fiscal year, the finance ministry may increase the amount of subsidy by an additional Tk 4,000 crore in the revised budget.

The government allocated Tk 9,000 crore in subsidy for fertiliser import this fiscal year. Of the amount, Tk 5,500 crore has already been spent.

Now, the agriculture ministry sought Tk 28,000 crore in subsidy if the government does not hike the price. It wants the amount to meet the rising fertiliser price, especially urea, in the international market.

A subsidy of Tk 5,500 crore out of the total allocation of Tk 9,000 has been provided to the agriculture ministry until December last year. The finance ministry is considering providing Tk 3,000 crore additionally for the farm sector.

Speaking about the subsidy, Agriculture Minister Abdur Razzaque said: “The government was worried about where such a huge subsidy would come from. If such a huge amount in subsidy is given, the other development activities will come to a standstill.”

In a statement on January 29, he said Prime Minister Sheikh Hasina said she would not raise the price of fertiliser at the moment for the welfare of farmers and to continue the development of the agriculture sector.

A finance ministry official said the government may increase the price of fertiliser after the end of the Boro harvest in March.

“But the increase would not be much,” he added.

The government may increase its allocation for incentive expenses for remittance in the revised budget to help the economy absorb the shock stemming from the pandemic. Another Tk 1,000 crore is likely to be allocated for this.

It had earmarked around Tk 3,000 crore in the original budget to pay incentives to the beneficiaries of remittance.

The government may also increase subsidies in the jute sector. About Tk 300 crore would be given to this sector in the revised budget, he added.