Tackling fiscal deficits for sustainable growth

Bangladesh's economic stability is seriously threatened by its mounting debt load and widening fiscal deficits. The public debt has increased due to the growing reliance on borrowing from outside sources to fund development projects, and the government's finances are being strained by the growing fiscal imbalance.

If not resolved quickly, these problems could impede Bangladesh's progress towards its development objectives. Improving tax collection methods, cutting back on wasteful government expenditures, and prioritising more effective resource allocation are all essential for lowering the fiscal imbalance. Improving fiscal discipline will also require addressing corruption and fortifying governmental financial management.

Additionally, it is crucial to concentrate on sustainable debt management. To lower the risk of becoming caught in a debt trap, the government must make sure that borrowing is allocated to profitable ventures that yield returns. Furthermore, promoting foreign direct investment (FDI) and local investment may offer substitute financial sources, reducing the demand for outside borrowing.

To solve these budgetary issues, drastic and quick changes are needed. If the proper policies are implemented, Bangladesh can stabilise its economy and create the conditions for long-term, sustainable growth.

Md.Efat Hossain

Bachelor of Business Administration

North South University

efat.hossain@northsouth.edu