The new government of Bangladesh has borrowed Tk 445 billion from the banking system within just 52 days of assuming power. According to Bangladesh Bank data, this rapid borrowing has already exceeded the fiscal year’s target of Tk 1.04 trillion, with total government borrowing reaching Tk 1.127 trillion by April 9. Of this, the interim government borrowed Tk 682.29 billion between July and February 16. The report indicates that the government’s net bank borrowing during the first nine months and nine days of the fiscal year rose by 139.6 percent compared to the same period last year.

Sector insiders attribute the surge in borrowing to election-related expenses, new investments, and increased subsidies in the energy sector due to the Iran war’s impact. Revenue collection has fallen short by about Tk 715 billion over the first eight months, forcing the government to rely more heavily on bank loans to meet expenditure.

Bangladesh Bank’s former chief economist Dr. Mustafa K Mujeri noted that low revenue collection has made it difficult to meet budgetary spending targets, pushing the government to exceed its borrowing limit even with three months left in the fiscal year.