The Economic Legacy of the AL Government: A $156 Billion Debt Burden

As Bangladesh navigates its economic future, the legacy of the Awami League government has come under scrutiny. When Sheikh Hasina returned to power in 2008, the nation’s total debt was $33.66 billion. Fast forward to 2024, and the debt has ballooned to a staggering $156 billion.

Key Factors Behind the Debt Surge

1. Stagnant Revenue Growth: Despite significant government spending, revenue growth has not kept pace. The revenue-GDP ratio remains one of the lowest globally, hovering around 9%.
2. Corruption in Mega Projects: Economists have pointed to corruption in large-scale projects as a major contributor to the debt. Projects like the Rooppur Nuclear Power Plant and the Padma Bridge have seen costs escalate due to unnecessary layers and mismanagement.
3. Increased Government Expenditure: Government spending has increased dramatically, from Tk 94,000 crore in FY09 to over Tk 7 lakh crore in the revised budget for FY24.

The Impact on Bangladesh’s Economy

The debt burden has significant implications for Bangladesh’s financial health. A substantial portion of the budget is now allocated to interest payments, limiting funds available for development and social programs.

Moving Forward

Addressing this debt requires a multifaceted approach:

• Reforming Revenue Collection: Strengthening the National Board of Revenue (NBR) and reducing tax exemptions can help boost revenue.
• Enhancing Transparency: Implementing stricter oversight on mega projects to prevent cost overruns and corruption.
• Promoting Sustainable Growth: Focusing on sectors that can drive long-term economic growth and reduce dependency on loans.

As Bangladesh looks to the future, it is crucial to learn from past mistakes and implement strategies that ensure sustainable economic development.

#BangladeshEconomy #DebtManagement #EconomicGrowth #Transparency #SustainableDevelopment