Budget 2022-23: Govt prioritises agriculture, allocation increases to Tk82,745 crore

In the latest budget proposal for FY 2022-23, agriculture has been prioritized because of its importance in ensuring food security.

“Our priority in agriculture research and expansion service, farm mechanization, irrigation and seed, agricultural subsidies including fertilizer subsidy will continue in the next fiscal year to accelerate the progress that has been made in the sector over the past few years,” said Finance Minister AHM Mustafa Kamal.

Mustafa Kamal said considering the price trend of oil, gas and fertilizer in the international market, the estimated subsidy and incentives spending can be 15-20% higher than the initial estimates, which may pose a challenge in budget management for the next fiscal year.

The government is going to increase the subsidy by a big margin for fertilizers in the next fiscal year (2022-23).

The minister said the entire subsidy for fertilizer was estimated at Tk9,200 crore in the current budget.

However, compared to May 2021, international prices in May 2022 for TSP, DAP and MOP fertilizers have gone up by 57%, 47% and 177%, respectively, he said.

Under the circumstances, he said the overall subsidy in FY21-22 for all types of fertilizers amounts to around Tk12,690 crore, adding that the government will provide Tk16,527 crore as subsidy in the coming fiscal year.

The minister also emphasized agricultural modernization in a bid to enhance food production and ease labour dependency in the sector.

The government has been providing farmers up to 50%–70% subsidies on agro-machinery, he said.

He also said some 71,502 units of such machinery have been distributed including combined harvesters, reapers, clippers and power tillers since 2010, which have helped farmers cope with agricultural labour scarcity and lower their production costs.

“We have taken up a project for Tk3,020 crore titled ‘Mechanization of Agriculture Work through Integrated Management’ which targets to distribute 51,300 units of agro-machinery of 12 categories between 2020-2025,” he said.