Dhaka, June 10 -- The BNP government is preparing to present one of Bangladesh's most ambitious budgets in recent years, promising greater investment in education, healthcare, social protection and infrastructure at a time when the economy is still struggling to regain momentum.

For economist Mustafizur Rahman, however, the question is not simply how much the government plans to spend. The greater challenge is whether Bangladesh can finance those ambitions without sliding into a cycle of mounting debt, weak institutions and disappointing returns.

Many middle-income countries, he notes, have found themselves trapped in precisely that predicament -- unable to sustain growth while burdened by rising debt obligations.

As Bangladesh embarks...