The Bangladesh government borrowed about Tk 330 billion more than its target from the banking system during the 2025–26 fiscal year to cover a widening budget deficit. According to updated data from Bangladesh Bank, the government’s net bank borrowing reached over Tk 1.37 trillion by June 23, exceeding the original budget target of Tk 1.04 trillion. The revised budget had raised the borrowing goal to Tk 1.18 trillion.

Officials attributed the higher borrowing to a significant shortfall in revenue collection, slower-than-expected foreign loan inflows, and increased public expenditure. The National Board of Revenue reportedly fell short of its revenue target by about Tk 880 billion. Bangladesh Bank data showed that net government borrowing from banks rose by Tk 297.46 billion, or 27.71 percent, compared with the same period a year earlier.

At the end of the fiscal year, total government debt from the banking sector stood at Tk 6.88 trillion, up from Tk 5.51 trillion a year earlier. For the new 2026–27 fiscal year, the government has set a bank borrowing target of Tk 1.12 trillion.