Bangladesh Bank’s latest report shows that the government borrowed Tk 985.26 billion from the banking sector between July 2025 and March 19, 2026, equivalent to 94.73 percent of its annual target of Tk 1.04 trillion. The sharp rise in borrowing stems from a major shortfall in revenue collection, with the National Board of Revenue reporting a Tk 714.72 billion deficit in customs and tax receipts during the first eight months of the fiscal year.

Officials and analysts attribute the increased borrowing to rising government expenditure, including election-related costs, subsidies in the energy sector, and higher operating expenses. Former Bangladesh Bank chief economist Dr. Mustafa K Mujeri noted that the government has already borrowed nearly 95 percent of its target with over three months remaining in the fiscal year, raising concerns that borrowing may exceed planned limits.

Mujeri warned that continued reliance on bank loans to finance spending could pose risks to the economy. He emphasized the need for stronger revenue generation, policy reforms, and job creation to reduce dependence on debt and ensure long-term fiscal sustainability.