Removing Energy Subsidies in Bangladesh Could Boost Economy, Benefit Households
Removing subsidies on electricity and natural gas in Bangladesh could boost the country's economy, benefiting everyone. High-income households currently benefit the most from these subsidies. A study used a computer model to see how the economy would change if these subsidies were removed. The results showed that removing the subsidies would increase the country's GDP. The impact on the economy depends on how the saved money is spent. Investing the savings would help the country the most, followed by cutting income taxes or indirect taxes. Giving the saved money directly to households is not as helpful. Overall, eliminating these subsidies could improve the economy and benefit people across Bangladesh.