Govt’s operating spending rises in first half of FY25

The government of Bangladesh has spent Tk 186,286 crore in operating budget in the first six months of the 2024-25 fiscal year, which accounts for 36.7 percent of the total allocation.

This marks an increase from the 31.2 percent utilisation rate recorded during the same period of FY24. It indicates a faster pace of spending in the current fiscal year, according to the latest Monthly Fiscal Report released yesterday.

The report published by the Finance Division highlights that a significant portion of the spending has gone toward interest payments, public order and safety and subsidies.

Interest payments and subsidies together accounted for 53 percent of total operating expenditures in the first six months of FY25, a sharp increase from 44 percent a year earlier

Among the key spending areas, interest payments have taken one of the largest shares, amounting to Tk 62,560 crore. The government has also disbursed Tk 35,589 crore in subsidies, bringing the combined spending on these two categories to over half of the total operating expenditure.

Interest payments and subsidies together accounted for 53 percent of total operating expenditures in the first six months of FY25, a sharp increase from 44 percent a year earlier.