angladesh has debt to GDP ratio 38.86 percent during 2020.During 2021 the budget components are listed in the table below: Budget components As % of GDP Total tax revenue 10.52 Total Expenditure 15.63          Total interest payment 1.35 Due to the COVID pandemic, nominal GDP growth has been decreased 13.83 percent in 2020 while average interest rate on public debt in 9.2 percent Given the information, construct the debt dynamic equation. Do you think that debt path will stable? Explain it through diagram

ENGR.ECONOMIC ANALYSIS
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Bangladesh has debt to GDP ratio 38.86 percent during 2020.During 2021 the budget components are listed in the table below:

Budget components

As % of GDP

Total tax revenue

10.52

Total Expenditure

15.63         

Total interest payment

1.35

Due to the COVID pandemic, nominal GDP growth has been decreased 13.83 percent in 2020 while average interest rate on public debt in 9.2 percent

  1. Given the information, construct the debt dynamic equation. Do you think that debt path will stable? Explain it through diagram
  2. Estimate the debt to GDP ratio numerically during 2021 and explain this change from 2020 to 2021.
  3. Estimate the steady state debt to GDP ratio in recent Bangladesh government decides to take expenditure fiscal policy. Do you think that steady state debt will be changed? Explain your answer. 
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