Interim govt borrowed to finance operating costs for first time since Ershad era: Citizen's Platform for SDGs
The research platform said the government had to borrow Tk23,742 crore due to lower-than-expected revenue collection.
The interim government has borrowed to meet its operating expenditure, becoming the second administration to do so after the regime of Hussain Muhammad Ershad, according to the Citizen's Platform for SDGs, Bangladesh.
The research platform said the government had to borrow Tk23,742 crore due to lower-than-expected revenue collection.
The information was presented today (19 February) at a media briefing titled "Economic Review at the Outset of the New Government", held at BRAC Inn Centre in the capital. The keynote paper was delivered by Towfiqul Islam Khan, additional research director at the Centre for Policy Dialogue (CPD).
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Towfiqul Islam Khan said the government's operating expenditure stood at Tk4,59,796 crore in fiscal year 2025, while revenue earnings amounted to Tk4,36,000 crore. As a result, the government had to rely on borrowing of more than Tk23,000 crore to cover the shortfall.
He noted that no government after the Ershad administration had needed to borrow to finance operating expenses.
According to the Citizen's Platform, weak revenue mobilisation, economic instability and sluggish investment contributed to the situation. The interim government has also faced additional pressure from clearing outstanding liabilities left by the previous administration, he added.
