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The dialogue will present the findings of a recently conducted CPD study on the subsidy expenditure of Bangladesh. As we are aware, subsidy is an important instrument of development expenditure for developing countries like Bangladesh. It is deemed that the national budget should clearly delineate the fiscal plans of subsidy allocation to different sectors along with rationales, but more importantly to ensure the transparency of its efficient utilisation. However, in case of Bangladesh, the partial reporting of subsidy measures has been a long-stated issue. There are constant demands for subsidy crunch in sectors that are considered critical for economic and social welfare of country’s people. Also there are questions regarding economic viability of subsidy in many of these sectors. In view of this, CPD undertook the aforementioned study to examine at the macro level, the relevance and effectiveness of subsidy in Bangladesh as a fiscal tool, distributional equality for various sectors and put forward some recommendations to reform subsidy. The dialogue will present the findings of the aforementioned study and will raise the discussion among various relevant stakeholders regarding the topic.