Deficit financing strategy and fiscal sustainability in Bangladesh

Crawford School of Public Policy | Arndt-Corden Department of Economics

Event details

PhD Seminar (Econ)

Date & time

Friday 19 July 2024


Weston Theatre JG Crawford Building and Online Zoom


Mohammad Mahabub Alam

Bangladesh has effectively managed its public debt, implementing a deficit-biased fiscal policy due to robust GDP growth and favourable interest rates from concessional finance. However, this approach is unsustainable without fiscal reform. Analyzing data from 1983 to 2022 with a regime-switching model, the paper finds that the government’s fiscal response was positive to the rising debt (stabilizing) during 1989-1995 and 2002-2014, but insignificant during 1983-1989, 1996-2001, and 2015-2020. The primary determinant of fiscal policy appears to be temporary government spending, a fact at odds with the objectives outlined in the government’s long-term VISION 2041 plan and medium-term fiscal framework (MTFF).

To participate in-person

Venue: Weston Theatre, JG Crawford Building, 132 Lennox Crossing, Acton ACT (ANU Crawford School of Public Policy)

To participate online

Zoom link:

Updated:  23 July 2024/Responsible Officer:  Crawford Engagement/Page Contact:  CAP Web Team