The Awami League government ousted in the July-August mass coup was burdened with debt. According to analysts, the main reasons for this were rampant irregularities-corruption and illogical projects. According to official data, the total domestic and foreign debt status of the government till June 2023-24 was Tk 18 lakh 32 thousand 282 crore. This updated information on government debt has been released yesterday Thursday from the Treasury and Debt Management Branch of the Finance Department of the Ministry of Finance.
Out of the mentioned loans, the government has taken Tk 10 lakh 20 thousand 205 crores from domestic sources, and Tk 8 lakh 12 thousand crores from foreign sources. Two months before the fall of the Sheikh Hasina government, this was a picture of the debt burden on the country.
Stakeholders say this situation of huge government debt is fueling inflation and constricting spending on social security. As a result, inequality in society is becoming more pronounced. It is becoming dangerous for the overall development and social stability of the country.
After reviewing the information in the report of the Ministry of Finance, it was found that according to the calculation of the fiscal year 2023-24, 36.30 percent of the total domestic production in terms of money is debt. Out of this, 20.21 percent of domestic debt is foreign debt and the remaining 16.09 percent is foreign debt. Earlier, as of June 30, the debt status in 2023 was 9 lakh 16 lakh 17 thousand 313 crore, in 2022 it was 13 lakh 43 thousand 723 crore and in 2021 it was 11 lakh 44 thousand 296 crore.
Finance department officials, however, claimed that the loan amount, though significant, is not critical. This is below the IMF benchmark of 40 percent.
When Awami League took charge of the government on January 6, 2009, the domestic and foreign debt status was 2 lakh 76 thousand 830 crores. At that time the foreign debt position was high. But at the end of Awami League's long rule, it was reversed. At this time, however, the size of the gross domestic product (GDP) also increases. At the end of June 2024, the amount of loans taken from the banking system alone was Tk 5 lakh 96 thousand 863 crores. The remaining borrowings were taken against treasury bills and bonds. Apart from this, there is a large amount of debt against savings bonds and general provident funds.
