Bangladesh\u2019s economy now appears trapped in a cycle where new loans are being used mainly to repay old ones. In April alone, the government raised nearly Tk 46,000 crore through treasury bills. But out of that amount, Tk 32,800 crore was immediately spent on repaying previous treasury bill liabilities. In reality, only around Tk 13,200 crore remained available for actual government spending.<\/p>\n\n\n\n
Economists describe this as a dangerous rollover debt strategy \u2014 a system where debt is continuously recycled instead of reduced. Critics say it resembles trying to keep a sinking boat afloat by endlessly throwing water out with a bucket.<\/p>\n\n\n\n
At the same time, the country\u2019s revenue crisis is worsening rapidly. During the first nine months of the current fiscal year, the revenue deficit reached Tk 97,990 crore \u2014 the highest in Bangladesh\u2019s history. The National Board of Revenue (NBR) was given a target of more than Tk 5 lakh 3 thousand crore, but collections crossed only Tk 2 lakh 87 thousand crore. In March alone, the government failed to collect nearly half of its monthly target.<\/p>\n\n\n\n
Because revenue collection is collapsing, the government is becoming increasingly dependent on bank borrowing. In January last year, government borrowing from the banking sector stood at Tk 4 lakh 34 thousand crore. One year later, it climbed to Tk 5 lakh 63 thousand crore \u2014 an increase of nearly 30 percent.<\/p>\n\n\n\n
Meanwhile, private sector credit growth has slowed to just 6 percent. Analysts say banks are now far more interested in lending to the government because treasury bills and bonds offer guaranteed returns of over 10 percent with almost no risk. Lending to businesses, on the other hand, involves uncertainty, defaults, and operational challenges. As a result, private investment is shrinking, industrial expansion is slowing, and job creation is suffering.<\/p>\n\n\n\n
The government is also planning to borrow another Tk 1 lakh 49 thousand crore between April and June. Of that amount, Tk 1 lakh 10 thousand crore will come from treasury bills and Tk 39 thousand crore from bonds. Interest rates on these borrowings are already above 10 percent.<\/p>\n\n\n\n
Economists warn that ordinary citizens will ultimately carry the burden of these rising interest payments. Government debt is repaid using taxpayer money, meaning the public will finance the cost of this growing debt crisis while already struggling under inflation and rising living expenses.<\/p>\n\n\n\n
Bangladesh\u2019s total public debt has now exceeded Tk 24 lakh crore. Domestic debt stands at Tk 12 lakh 47 thousand crore, while foreign debt has crossed 93 billion US dollars.<\/p>\n\n\n\n
Critics argue that the absence of accountability is making the situation even more dangerous. Despite record revenue shortfalls, rising inflation, and weak investment, officials continue to describe increased government spending as a \u201cnormal\u201d end-of-year fiscal process. But many are now asking how long an economy can survive by borrowing simply to repay previous borrowing.<\/p>\n","protected":false},"excerpt":{"rendered":"
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