Govt's bank borrowing target set at Tk1.37 lakh crore in FY25

 

About 85.4% of the domestic funding to meet the budget deficit will be raised through borrowing from the banking sector

The government has set a target of borrowing Tk1,37,500 crore from the banking sector to meet the budget deficit for the fiscal year 2024-25.

In the proposed budget for FY25, placed in the parliament today (6 June), Finance Minister Abul Hassan Mahmood Ali said the government has to collect a total of Tk2.56 lakh crore from foreign and domestic sources to meet the budget deficit. 

Out of this, Tk95,100 crore will be collected as foreign grants and loans and Tk1.61 lakh crore will be collected from domestic sources.

About 85.4% of the domestic funding will be raised through borrowing from the banking sector.

In the budget for FY24, the finance ministry estimated the target of borrowing from banks at Tk1,32,395 crore. 

Due to the failure to collect the desired revenue, however, the finance ministry increased the amount of bank borrowing to Tk1,55,935 crore in the revised budget.

According to data from the Bangladesh Bank, the government's net borrowing from the banking sector amounted to Tk45,557 crore from last July to 22 April this year, as a repayment of Tk19,874 crore was made to the central bank.

THE BUSINESS WORLD