Dhaka, April 12 -- Bangladesh is facing mounting fiscal pressure as capital expenditure continues to decline, raising concerns over the country's growth trajectory and poverty reduction efforts.

Analysts on Saturday noted that the shift towards higher recurrent spending was limiting the government's ability to invest in long-term development.

With revenue collection lagging and borrowing increasingly being used to cover routine expenses, economists say, the country risks undermining its economic resilience unless urgent fiscal reforms are undertaken.

Capital expenditure in the current fiscal year (FY2025-26) is likely to be squeezed further, as revenue collection may again fall short of the target, they added.

Economists say the contr...