Foreign Currency

Impact on Revenue Collection and Economy


Over the last decade, the amount of domestic and foreign loans has increased by nine percentage points in proportion to the revenue the NBR collects, shows an analysis of the data of NBR and the finance ministry. This means the government’s borrowing is increasing every year. The tendency of borrowing has been higher for the last three to four years.

The Bangladesh government borrows more from institutions and countries like the World Bank and Asian Development Bank (ADB), and Japan, China, Russia and India. Most of the loans are taken to implement various projects under the Annual Development Programme (ADP). And, banks and financial institutions are among the top internal sources of the government’s loan. Besides, the government borrows money by selling savings bonds and issuing bonds to meet its increased demand.

Sources from the Ministry of Finance said the government took a total of Tk 535.95 billion in loans from local and foreign institutions in the fiscal year 2013-14. The amount of NBR revenue that year was Tk 1.2 trillion. That means the government had to borrow about 44 per cent of the NBR’s income that year to meet the non-development expenditure and fund the development budget. The rate went on increasing over the next decade.



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