Official statistics reveal that the government’s bank borrowing for deficit financing in the current fiscal year has already exceeded expectations, reaching Tk 780 billion. This surge in borrowing reflects the significant disparity between public spending and earnings, as the country continues to face economic challenges. Economists and finance officials anticipate that the debt could reach a record high by the end of the fiscal year, as the impact of the pandemic and the ongoing war in Ukraine persists.
During the past ten-plus months, government borrowings for budget support have increased by 117%. Data from the central bank of Bangladesh shows that the net sum borrowed between July 01 and May 10 was Tk 780 billion, compared to Tk 360 billion during the same period the previous year. This borrowing spree is driven by the government’s growing need for cash and its liquidity crunch, resulting from revenue shortfalls and reduced sales of national savings certificates.