Low development spending leads to a sharp decline in government borrowing

According to budget documents, the total deficit for FY 2025–26 is projected at Tk 221,000 crore. 

The government will rely more on domestic bank borrowing than foreign financing in the next fiscal year, intensifying pressure on the economy.

The government’s borrowing from the banking system has remained in check so far in the ongoing fiscal year thanks to lower expenditures and higher revenue collection.   

Planning Minister MA Mannan says

When thinking outside the box was needed, the government opted for the tried-and-tested method.