In Part 3, we examined the fiscal arithmetic of the Family Card. Now we move from static cost to macroeconomic dynamics. The question is no longer simply "How much does it cost?" It is: How would it be financed — and what would that financing imply for debt sustainability, inflation, and growth?
This article explores three financing options: domestic revenue mobilisation, deficit financing, and external assistance. Each carries different macroeconomic risks.
Domestic revenue mobilisation — broadening the tax base, improving collection, reducing exemptions — is the most sustainable path but the slowest. Bangladesh's tax-to-GDP ratio remains low by international standards, and there is room to grow, but not overnight.
Deficit financing — borrowing domestically or externally to cover the cost — is faster but risks crowding out private investment, increasing debt servicing burdens, and, if monetised, fuelling inflation. The article examines Bangladesh's current debt position and debt sustainability thresholds.
The conclusion is clear: the Family Card cannot be financed by a single instrument. A realistic strategy will combine revenue reform, expenditure reallocation, phased expansion, and careful macroeconomic management — a balancing act that requires both fiscal discipline and political patience.