The relationship between budget deficits and inflation is not automatic. It depends largely on how the deficit is financed, the state of aggregate demand, the output gap, and the quality of public expenditure.

With inflation still biting, revenues lagging and borrowing pressures rising, the new fiscal plan is expected to test how far policy can stretch before economic constraints push…

The finance minister is proposing Bangladesh's largest-ever budget, setting a 6.5% growth target and pledging to bring inflation down to 7.5%

The government says it is aiming to restore comfort to people’s lives by bringing down inflation and stepping up growth

Higher foreign borrowing and ambitious revenue targets will be central to financing the government's plans

The government has proposed borrowing nearly Tk 1.56 trillion in foreign loans in the next fiscal year, which is 2.28 percent of GDP

The relationship between budget deficits and inflation is not automatic. It depends largely on how the deficit is financed, the state of aggregate demand, the output gap, and the…