Power, energy sectors likely to get Tk 10500cr in next budget
Dhaka, May 12 (UNB) – The power and energy sectors of the country are likely to receive an allocation of about Tk 10,500 crore in the coming national budget for fiscal 2012-13, officials sources at the Finance Ministry said.
In the current fiscal 2011-12, the total budgetary allocation for the sectors was Tk 8,311 crore.
The Finance Ministry officials are now outlining the national budget which is expected to be placed in the Jatiya Sangsad in the first half of June.
According to the sources, of the total allocation, the power sector is expected to get Tk 8,000 crore in the fiscal 2012-13. In the fiscal, the allocation was Tk 7,160 crore.
The energy and petroleum sector is likely to receive Tk 2,500 crore in the coming fiscal (2012-13), Tk 1,349 up from Tk 1,151 crore in the current fiscal (2011-12).
The Finance Ministry officials, however, could not give a clear idea about the subsidy to be given for the power and energy sectors. The subsidy is not included in the power and energy sectors’ budget as it directly comes from the Finance Ministry’s block allocation, they said.
The officials said it is likely that the power and energy sectors will continue to receive the highest budgetary allocation in different forms and types, including subsidy.
In the current fiscal the government has to spend Tk 38,500 crore as subsidy for power, energy and agriculture sectors, 4.3 percent of the total GDP. The original subsidy allocation was Tk 20,477 crore.
Of the subsidy, the power and energy ministry received more than Tk 20,000 crore while the sectors received the rest of the fund.
Officials said the subsidy was spent for fuelling the rental power plants which excessively pushed up the government’s petroleum fuel import.
The government supplies the petroleum fuel to rental power plants at a subsidised rate and then buys electricity from those at higher rates for selling it to public at lower rates.
The power and energy ministry’s budgetary allocation will be spent mainly for implementation of different projects of the power and energy sectors.
The government has signed contracts for implementation of about 50 power plant projects of which some will be set up in public sector while some will be executed by the private sector sponsors from which the government will buy electricity.
In the current fiscal 2011-12, the total budgetary allocation for the sectors was Tk 8,311 crore.
The Finance Ministry officials are now outlining the national budget which is expected to be placed in the Jatiya Sangsad in the first half of June.
According to the sources, of the total allocation, the power sector is expected to get Tk 8,000 crore in the fiscal 2012-13. In the fiscal, the allocation was Tk 7,160 crore.
The energy and petroleum sector is likely to receive Tk 2,500 crore in the coming fiscal (2012-13), Tk 1,349 up from Tk 1,151 crore in the current fiscal (2011-12).
The Finance Ministry officials, however, could not give a clear idea about the subsidy to be given for the power and energy sectors. The subsidy is not included in the power and energy sectors’ budget as it directly comes from the Finance Ministry’s block allocation, they said.
The officials said it is likely that the power and energy sectors will continue to receive the highest budgetary allocation in different forms and types, including subsidy.
In the current fiscal the government has to spend Tk 38,500 crore as subsidy for power, energy and agriculture sectors, 4.3 percent of the total GDP. The original subsidy allocation was Tk 20,477 crore.
Of the subsidy, the power and energy ministry received more than Tk 20,000 crore while the sectors received the rest of the fund.
Officials said the subsidy was spent for fuelling the rental power plants which excessively pushed up the government’s petroleum fuel import.
The government supplies the petroleum fuel to rental power plants at a subsidised rate and then buys electricity from those at higher rates for selling it to public at lower rates.
The power and energy ministry’s budgetary allocation will be spent mainly for implementation of different projects of the power and energy sectors.
The government has signed contracts for implementation of about 50 power plant projects of which some will be set up in public sector while some will be executed by the private sector sponsors from which the government will buy electricity.
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