Debt and Deficit: Trends and Challenges

Monthly Bangladesh Economic Update, September 2017

September 2017

The Unnayan Onneshan (UO), an independent multidisciplinary think-tank, in its monthly publication of the ‘Bangladesh Economic Update’ September 2017, reveals that persistently increasing outstanding debt along with high debt-service payment every year is likely to lower development finance and escalate intergenerational debt burden in the future.

The research organisation in its eighth year of this monthly publication notes that at the end of FY 2016-17, the total outstanding domestic debt has increased by 13.25 percent. According to the most recent data, the total outstanding external debt burden increased by 10.1 percent at the end of FY 2015-16. On the other hand, rate of growth in net foreign aid decreased to 2.10 percent in FY 2016-17 from 17.54 percent in FY 2015-16.

The think tank finds that the debt-gross domestic product (GDP) ratio is on the rise since FY 2013-14. Referring to the recent data published by the central bank, the UO states that the outstanding domestic debt as percentage of GDP was 15.45 percent in FY 2013-14, 15.50 percent in FY 2014-15, and 15.78 percent in FY 2015-16, and 15.83 percent in FY 2016-17.





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