Bangladesh, June 8 -- The government's proposed allocation for subsidies, incentives and cash assistance in FY2026-27 is set to decline as a share of the economy despite growing concerns over rising import costs linked to ongoing tensions in the Middle East.

The conflict has contributed to higher global prices for fuel oil, liquefied natural gas (LNG) and fertilisers, increasing costs for electricity generation, industrial production and agricultural activities in Bangladesh. The situation has raised concerns about production expenses, food security and broader economic stability.

While government officials have acknowledged that additional support may be required to help industries and farmers manage higher costs, the proposed budget ...