26 Pages Posted: 14 Jul 2008
Date Written: June 12, 2008
The ability to pay for a government-led investment strategy to achieve the millennium development goals (MDGs) is determined by the resources available to the government through economic growth, taxation, loans, and grants. Unsustainable public debts increase poverty directly through negative impacts on economic growth as well as indirectly through cuts in spending. Hence, the issue of fiscal debt sustainability is critical for achieving the MDGs. In this paper, we use the debt projection module of SimSIP Debt to project the evolution of Bangladesh's public debt over a 15-year horizon (from fiscal year 2006 to fiscal year 2021) under three different macroeconomic scenarios and two different financing scenarios of an ambitious government-led investment strategy.
Keywords: debt sustainability, public debt, MDGs
JEL Classification: O11
Suggested Citation: Suggested Citation
Gunter, Bernhard G. and Rahman, A. F. M. Ataur, Analyzing Bangladesh's Debt Sustainability Using SimSIP Debt (June 12, 2008). Available at SSRN: https://ssrn.com/abstract=1159216 or http://dx.doi.org/10.2139/ssrn.1159216
By Dirk Kohnert