Dhaka, May 12 -- Bangladesh continues to lag behind its least developed country (LDC) graduating peers in both public spending and revenue mobilisation, with its fiscal deficit projected to remain above 4 percent of GDP through 2026.
Despite increasing development demands, the country allocates a relatively low share of its GDP to public expenditure compared to South and Southeast Asian counterparts. In 2025, Bangladesh's public spending stood at just 13.0 percent of GDP-far below Nepal's 23.4 percent, Lao PDR's 18.4 percent, and Cambodia's 17.9 percent.
This trend is expected to persist in 2026, with Bangladesh's spending projected to reach only 14.0 percent of GDP.
Revenue mobilisation also remains one of the weakest in the region. By ...