Higher debt to put strain on Bangladesh as revenue remains low

Bangladesh’s debt-to-GDP ratio is set to cross 40% in the current fiscal year as the government continues borrowing amid lower revenue collection. It was 39.8% in FY2022-23 and is forecast to reach 41.41% in FY2023-24, according to an IMF report. While the debt burden rises, revenue earnings remain low at around 8-9% of GDP. Economists warn the high debt could be risky if revenue growth doesn’t pick up and the dollar crunch persists. They recommend raising revenue and reducing wasteful expenditure to lessen debt risks.