In Bangladesh, the first budget since the end of authoritarian rule has set a record at 9.38 trillion taka, nearly doubling health spending and pledging to tackle non-communicable diseases. Yet the fiscal package, presented to parliament on 11 June, has drawn sharp scrutiny from business leaders and civil society. The Bangladesh Chamber of Industries warned that heavy government borrowing from domestic banks to finance the deficit risks crowding out private-sector credit, potentially undermining the 6.5 per cent GDP growth target. Meanwhile, health advocates point to a glaring contradiction: while the budget trumpets ambitious public-health investments, it quietly raised cigarette pack prices in a way that analysts say channels more revenue to tobacco companies rather than discouraging consumption. Viewed from Dhaka, the decision appears to undermine the very non-communicable disease prevention goals the budget claims to prioritise.

The budget debate has also taken on a distinctly Westminster character. For the first time, both the main opposition party and a newly formed citizens’ party published full shadow budgets ahead of the official presentation, while the Centre for Policy Dialogue offered detailed independent analysis. This emerging ritual, long a hallmark of mature parliamentary democracies, signals a shift in Bangladesh’s political culture after years of autocratic rule. Whether these alternative fiscal blueprints will be treated as mere political theatre or as raw material for a more consensual national budget remains an open question.

Across the Atlantic, credit stress is manifesting in different forms. In Argentina, rising delinquency rates on personal loans and credit-card financing are flashing warning signals for the financial system. Households, squeezed by incomes that have failed to keep pace with living costs, increasingly turned to credit to sustain daily consumption. But as financing costs climbed and budgets tightened, repayment arrears have surged, according to sector specialists. The trend underscores the vulnerability of consumer-led growth strategies in an environment of elevated inflation and restrictive monetary policy.

Brazil’s industrial sector is experiencing a parallel strain. A survey by the National Confederation of Industry found that 45 per cent of firms expect to increase their bank debt over the next three months, primarily to cover working capital and inventory costs. The findings, released in mid-June, reflect the lingering effects of tight monetary policy on economic activity. Companies are being forced to borrow more even as credit remains expensive, a dynamic that could squeeze margins and dampen investment. Viewed from Brasília, the data add to concerns that the country’s recovery may be hobbled by financial fragilities in the corporate sector.

Taken together, these snapshots from three continents illustrate a broader tension confronting emerging economies. Governments are under pressure to expand social spending and stimulate growth, but fiscal expansion can collide with monetary restraint, driving up borrowing costs and straining both household and corporate balance sheets. In Bangladesh, the risk is that a landmark budget’s developmental ambitions are undermined by contradictory tax signals and a crowding-out of private credit. In Argentina and Brazil, the immediate challenge is managing the legacy of high interest rates and inflation without tipping vulnerable borrowers into distress. For policymakers and investors alike, the coming months will test whether the post-pandemic recovery can be sustained without a fresh build-up of financial risk.