Bhattacharya flags inflation, debt risks in Bangladesh

Bhattacharya expressed concern about the relentless rise in inflation, highlighting its impact on low-income and marginalized individuals during a dialogue titled "New Government, National Budget, and Citizens' Aspirations" at Lakeshore Hotel in the capital today. "They are facing intense problems in affording food, health and health services," he said. The country's reliance on borrowing for debt servicing is increasing, and so is the debt risk, he said. If the private sector debt is taken into account, Bangladesh's debt-to-GDP ratio is 42 percent now. "The government's loan from the domestic sources is almost double compared to the foreign debt, which is a sign of big problems," said Bhattacharya. In the realm of debt payment, Bangladesh has maintained an impeccable record, yet it's acknowledged that roughly $5 billion remains outstanding in the energy sector, as noted by him. Likewise, he underscored the dwindling fiscal capacity of the government amidst sluggish growth.