Govt debt exceeds Tk 21 trillion

Bangladesh’s total government debt has surpassed Tk 21 trillion for the first time, reflecting mounting fiscal pressures from persistent revenue gaps and ambitious infrastructure spending.

The Finance Division’s latest Debt Bulletin, released on Thursday, revealed that public debt reached Tk 21.44 trillion by the end of June—up nearly 14% from Tk 18.89 trillion a year earlier.

Of this, external debt stood at Tk 9.49 trillion, accounting for 44.27% of the total—more than double the Tk 4.20 trillion recorded in 2021. Domestic debt also rose, increasing by about 11% year-on-year to Tk 11.95 trillion from Tk 10.76 trillion.

Officials pointed to post-pandemic budget support from development partners and large-scale projects—including the Rooppur Nuclear Power Plant, Dhaka Metro Rail, and Matarbari coal-fired power plant—as key contributors to the debt surge.

While these investments are intended to drive long-term growth, the rapid debt accumulation has intensified concerns over fiscal sustainability and the government’s capacity to manage rising debt-servicing obligations in the years ahead.