Bangladesh Economic Update August 2013
The current issue of the Bangladesh Economic Update unearths the ‘deficit and debt’ situation on the economy of Bangladesh. More specifically, the study addresses the crucial question of whether the existing ‘deficit and debt’ situation may reduce the capacity of the government to continue its investment in physical and social expenditures. The further dealing of the report is how the management of ‘deficit and debt’ through borrowing from external and internal sources could affect the economy of the country.
There exists a correlation between ‘Deficit and Debt’ whereas deficit must be financed by borrowing from external and internal resources to meet up the shortage. Deficit, however, as a share of GDP is estimated at only 4.6 percent in FY 2013-14, which is not that alarming. The actual matter in this regard, is the financial management for this deficit as well as the utilisation of the debt.