Government Forgives 21 Lakh Crore Taka in Debt Relief Initiative

ছবিঃ সংগৃহীত

News Desk: For the first time, the total debt of the Government of Bangladesh has crossed Tk 21 trillion, driven by prolonged revenue shortfalls and ambitious development spending.

According to the Debt Bulletin released by the Ministry of Finance on Thursday, the total debt stood at Tk 21.44 trillion at the end of June, marking an increase of nearly 14% compared to Tk 18.89 trillion a year ago.

Of this, foreign debt amounts to Tk 9.49 trillion, accounting for 44.27% of the total debt. Over the past five years, foreign debt has gradually increased. In 2021, it was Tk 4.20 trillion, representing about 37% of total debt.

Domestic debt has also risen, growing nearly 11% from Tk 10.76 trillion in the previous fiscal year to Tk 11.95 trillion. In 2021, domestic debt stood at Tk 7.22 trillion.

Statistics indicate that the growth of foreign debt has outpaced domestic debt, more than doubling in comparison.

Officials from the Ministry of Finance attribute this surge in debt to budgetary support from development partner countries after the COVID-19 pandemic, and substantial spending on major projects including the Ruppur Nuclear Power Plant, Dhaka Metro Rail, and the Matarbari coal-based power plant.