The government has been analyzed for why it is desperate for money. Recently, the government decided to increase VAT, which is expected to increase revenue by Tk 12,000 crore. However, there are two main reasons behind this move:

The government has a deficit of money in the treasury, which has been going on since the time of the Awami League government. This deficit has fallen on the current interim government. Revenue revenue has decreased significantly due to the student uprising and the unstable situation of the post-Sheikh Hasina government. Revenue revenue from July to November 2024 was Tk 3,500 crore less than the same period in 2023, and Tk 42,000 crore less than the government’s target.

In addition, there is pressure to repay foreign loans, especially the Indian company Adani owes the government $ 830 million, which has created a major financial pressure on the government.

However, in addition to the government’s increase in VAT, some expenditure increases have also been decided, such as the decision to increase the dearness allowance of government officials and the decision to increase foreign allowances, which is further increasing the government’s expenditure. The government is trying to overcome the financial crisis through these measures, but CPD Research Director Dr. Khandaker Golam Moazzem said that questions have been raised about whether it was necessary to provide such a large amount of dearness allowance at this time.