The government of Bangladesh is expected to receive US$1.02 billion in budget support from three foreign lenders next month.
The funds will be used to help finance the country’s budget deficit, which is expected to reach US$2.42 trillion in fiscal year 2022-23.
The three lenders are the Asian Development Bank (ADB), the Japan International Cooperation Agency (JICA), and the Asian Infrastructure Investment Bank (AIIB).
The ADB has already approved a US$400 million loan, while JICA and AIIB are expected to approve their respective loans in the coming weeks.
The budget support will help reduce the government’s reliance on domestic borrowing, which has increased in recent years. The government has been borrowing heavily from the banking system to finance its budget deficit, which has pressured the country’s foreign exchange reserves.
The budget support will also help to boost economic growth. The government has said that it will use the funds to invest in infrastructure, education, and healthcare. These investments are expected to create jobs and boost productivity, which will help to drive economic growth.
The budget support is a welcome development for Bangladesh. The country is facing several economic challenges, including a high budget deficit, a weak currency, and rising inflation. The budget support will help to address these challenges and support economic growth.
In addition to the budget support, the government is taking other steps to address the country’s economic challenges. The government is working to increase revenue collection by improving tax administration and expanding the tax base.
Efforts to cut unnecessary spending and improve efficiency are also taken.
The government’s efforts to address the country’s economic challenges are expected to help to improve the country’s economic outlook. The budget support will provide a much-needed boost to the economy, and the government’s other measures are expected to help to sustain economic growth in the long term.