The government borrowed Tk 24,245 crore from the banking sector in the first three months (July to September) of the 2026-27 fiscal year. In the same period of the last fiscal year it repaid more to the banks than it borrowed, leaving its net borrowing at minus Tk 6,926 crore.
People in the sector say the government is relying more on bank loans to meet operating and development spending because revenue is not coming in as expected. The private sector, meanwhile, is under pressure from gas and power shortages among other things. Many factories have closed, and those still running are struggling to keep up production. This has held back economic activity and squeezed revenue collection, which is why borrowing from the banks has risen.
According to Bangladesh Bank data, the government borrowed Tk 23,227 crore from commercial banks in the first three months of this fiscal year. In the same period of the last fiscal year its net borrowing from them was minus Tk 4,226 crore, meaning it repaid more than it took.
Over the same period the government borrowed Tk 1,017 crore from the central bank. A year earlier its net borrowing from the central bank was minus Tk 2,699 crore.
The government’s target for borrowing from the banking system this fiscal year is Tk 1,12,000 crore. It took about 21.65 percent of that in the first three months alone.
Dr Zahid Hussain, former lead economist at the World Bank’s Dhaka office, said the revenue target of about Tk 7 lakh crore set for the National Board of Revenue (NBR) is not realistic. The NBR has never come close to a target of that kind.
He said the government’s debt burden and financial pressure will grow. Higher pay and allowances for government officials and employees will add at least Tk 1,06,000 crore to operating spending within the next two years. New social protection programmes and higher prices for fuel oil and electricity on the international market have also raised subsidy costs. Raising power and energy prices can ease the subsidy burden somewhat, but cannot remove it.
Zahid Hussain said the government’s spending burden is growing for a range of reasons, while revenue is unlikely to rise significantly in the near future. Even holding revenue at its earlier level is now a big challenge. To get out of this situation the government must stop wasting public money and spend economically, and take effective steps to raise revenue. That would make it possible to rely less on borrowing.
Bangladesh Bank data show that at the end of 30 September the government’s outstanding borrowing from commercial banks stood at Tk 6,14,652 crore, up from Tk 5,91,424 crore at the end of June, an increase of Tk 23,228 crore in three months.
Its outstanding borrowing from the central bank stood at Tk 95,069 crore at the end of September, against Tk 94,051 crore at the end of June. In all, the government’s outstanding debt to the banking sector stood at Tk 7,09,721 crore at the end of September.
Bank officials said private-sector credit growth has fallen below 5 percent, so government borrowing from the banks is not causing a major problem for now. But as the interest rate on government borrowing has come down, the banks’ income has fallen. In many cases the rate on government borrowing is now below the rate paid on deposits, which is putting pressure on the banks’ profits.
Revenue collection, meanwhile, fell well short in the first two months of the fiscal year. The NBR’s target for July and August was Tk 81,053 crore; it collected Tk 55,562 crore, Tk 25,491 crore short, or 68.55 percent of the target.
বাংলায় মূল প্রতিবেদন পড়ুন · Read the original Bengali report