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 plans to borrow Tk 137,500 crore from the banking sector in the fiscal 2024-25 to finance the budget deficit. If the Bangladesh Bank does not provide any fund, the entire amount will need to come from the commercial banks.
The government’s overdependence on the banking sector to finance its budget deficit will affect the financial sector as well as hurt private sector investment and employment generation, according to experts.
The budget for fiscal 2024-25 proposes a total expenditure of Tk 797,000 crore with a total tax revenue of Tk 541,000 crore, resulting in a deficit of Tk 256,000 crore.
What is the need for 1,258 projects under the annual development programme (ADP)?
As the government wants to lower expenses, it is likely to contain the budget deficit to 4.6 percent of gross domestic product in the next fiscal year, a level seen a decade ago.
Planning Minister MA Mannan says
Says economist Zahid Hussain
Prime Minister Sheikh Hasina today (August 31, 2022) said Russia-Ukraine war and Covid-19 pandemic may have a negative impact on country’s balance of payment.
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 plans to borrow Tk 137,500 crore from the banking sector in the fiscal 2024-25 to finance the budget deficit. If the Bangladesh Bank does not provide any fund, the entire amount will need to come from the commercial banks.
The government’s overdependence on the banking sector to finance its budget deficit will affect the financial sector as well as hurt private sector investment and employment generation, according to experts.
The budget for fiscal 2024-25 proposes a total expenditure of Tk 797,000 crore with a total tax revenue of Tk 541,000 crore, resulting in a deficit of Tk 256,000 crore.
What is the need for 1,258 projects under the annual development programme (ADP)?
As the government wants to lower expenses, it is likely to contain the budget deficit to 4.6 percent of gross domestic product in the next fiscal year, a level seen a decade ago.
Planning Minister MA Mannan says
Says economist Zahid Hussain
Prime Minister Sheikh Hasina today (August 31, 2022) said Russia-Ukraine war and Covid-19 pandemic may have a negative impact on country’s balance of payment.
The overall budget deficit for the fiscal year 2022-23 will be Tk 245,064 crore, or 5.5 percent of GDP, said Finance Minister AHM Mustafa Kamal in his budget speech today.
