Bangladesh’s interim government is preparing a tighter budget to rein in the fiscal deficit while boosting job creation and stabilising the economy amid mounting debt concerns.
For the first time, the planning ministry has used a digital budget planning system to categorise spending based on economic codes
The railway ministry, the power division, and the primary and mass education ministry will see the biggest chop.
Interest payments and subsidies have absorbed nearly half of Bangladesh’s total budget expenditure in the first seven months of the current fiscal year, underscoring growing fiscal stress and raising concerns over public finances.
The government has reached a staff-level agreement with the International Monetary Fund for the fourth and fifth tranche of the $4.7 billion loan programme, putting to bed months of uncertainty over their disbursement.
The government is planning to significantly reduce its bank borrowing target in the upcoming fiscal year as it aims to narrow the budget deficit by scaling down the overall budget size.
The government is set to reach an agreement with the International Monetary Fund over the exchange rate issue that has been holding up the release of the fourth and fifth tranches of the $4.7 billion loan programme soon.
In a country weighed down by high inflation, dwindling fiscal space and weak investments, now is not the time for illusions.
Bangladesh’s interim government is preparing a tighter budget to rein in the fiscal deficit while boosting job creation and stabilising the economy amid mounting debt concerns.
For the first time, the planning ministry has used a digital budget planning system to categorise spending based on economic codes
The railway ministry, the power division, and the primary and mass education ministry will see the biggest chop.
Interest payments and subsidies have absorbed nearly half of Bangladesh’s total budget expenditure in the first seven months of the current fiscal year, underscoring growing fiscal stress and raising concerns over public finances.
The government has reached a staff-level agreement with the International Monetary Fund for the fourth and fifth tranche of the $4.7 billion loan programme, putting to bed months of uncertainty over their disbursement.
The government is planning to significantly reduce its bank borrowing target in the upcoming fiscal year as it aims to narrow the budget deficit by scaling down the overall budget size.
The government is set to reach an agreement with the International Monetary Fund over the exchange rate issue that has been holding up the release of the fourth and fifth tranches of the $4.7 billion loan programme soon.
Bangladesh’s approach to budgeting for health and education has come under sharp scrutiny, as decades of allocations have primarily gone towards construction. Meanwhile, the core of these sectors, service delivery, has been historically neglected.
Bangladesh’s upcoming national budget, set to be unveiled by the interim government in June, could mark a rare departure from past fiscal cycles.
In a country weighed down by high inflation, dwindling fiscal space and weak investments, now is not the time for illusions.
