Bangladesh’s domestic borrowing has increased significantly over the past year, reaching Tk 10.94 trillion by the end of January 2026, up from Tk 9.42 trillion a year earlier. According to a Bangladesh Bank report released on Thursday, the government borrowed Tk 726.47 billion from domestic sources between July and January of the current fiscal year, compared with Tk 401.44 billion during the same period of the previous year.

The report shows that Tk 649.23 billion was borrowed from the banking sector and Tk 77.23 billion from non-bank sources during the first seven months of the fiscal year. Sector insiders said the borrowing occurred under the interim government to cover election expenses, new bank investments, and operational costs, as revenue collection fell short of targets. The government’s budget deficit for the fiscal year was set at Tk 2.21 trillion, or 3.5% of GDP, with plans to borrow Tk 1.25 trillion domestically.

By March 30, 2026, the government had already borrowed Tk 1.06 trillion, surpassing its full-year domestic borrowing target, with most loans sourced from the banking system.