Debt Rises by Tk 2.6 Lakh Crore in 14 Months Under Yunus-Led Interim Government

BDD Desk

Dhaka, 17 February 2026: The country’s public debt increased by Tk 260,257 crore in the first 14 months of the interim government led by Muhammad Yunus. During this period, even though development expenditure fell to the lowest level in seven years, the amount of debt increased.

According to the latest debt bulletin of the Ministry of Finance, the total debt of the government was Tk 18,88,787 crore as of June 30, 2024 (before the fall of the previous government). By September 30, 2025, it had increased to Tk 2,149,444 crore. As a result, the increase in debt in 14 months was Tk 2,60,257 crore.

Of this increase in debt, foreign debt increased from Tk 8.12 lakh crore to Tk 9.51 lakh crore and domestic debt increased from Tk 10.76 lakh crore to Tk 11.97 lakh crore. The interim government has borrowed more from foreign sources, including IMF installments and budget support. In the last fiscal year, $3.44 billion was received as budget support, which is more than $2 billion in the previous year.

Experts say that the debt has increased due to low revenue collection, pressure to repay interest and principal on old loans, redemption of savings certificates due to inflation, currency depreciation and political instability that have disrupted tax administration. The previous government also had to borrow to pay outstanding bills, subsidies and other liabilities.

On the other hand, the Annual Development Programme (ADP) expenditure has decreased to Tk 1.53 lakh crore, the lowest in seven years. It was Tk 1.67 lakh crore in the 2018-19 fiscal year and Tk 2.05 lakh crore in the 2023-24 fiscal year.

Former World Bank economist Zahid Hossain said that the post-August political changes have led to a decline in revenue due to instability and disruptions in tax collection, which has limited the government’s fiscal capacity. CPD’s Tawfiqul Islam Khan noted that external debt repayment pressures and currency depreciation have also played a significant role. Meanwhile, this debt burden is seen as a major challenge for the new government (led by the BNP).

BNP Secretary General Mirza Fakhrul Islam Alamgir said that this debt burden must be addressed and mega projects must be re-evaluated.

Economists warn that if revenue targets are not met, more borrowing may be required, which will limit private sector credit flow and create frustration among the public.