As Bangladesh prepares to enter the new fiscal year, the government has set an ambitious revenue target of Tk 5.64 trillion (5,64,000 crore). However, the proposed national budget also reveals one of the highest deficits in the country’s history—Tk 2.26 trillion (2,26,000 crore).
To bridge this significant budget shortfall, the government plans to rely heavily on foreign loans and aid. Nearly half of the deficit—approximately Tk 1.01 trillion (1,01,000 crore)—is expected to be financed through external borrowing and development assistance from international partners.
Economists have expressed concern over the growing dependence on foreign loans, warning that it could increase the country’s debt burden and limit fiscal flexibility in the future. The remainder of the deficit is likely to be covered by domestic borrowing, including through savings certificates and bank loans.
The record revenue target reflects the government’s push to boost tax collection and improve fiscal discipline. However, critics argue that achieving such a high target may be challenging given the current economic climate, which includes sluggish investment, inflationary pressures, and weak private sector performance.
As the budget is set to be tabled in parliament, all eyes will be on how the government balances development priorities with fiscal sustainability, especially at a time when Bangladesh is navigating both internal and external economic challenges.
