Independent MP Rumeen Farhana on Tuesday said the government has borrowed Tk44,500 crore from the banking sector within 52 days of assuming office, arguing that the pace of borrowing has already exceeded the budgetary target for the current fiscal year.
Raising the issue in parliament during a supplementary question, the Brahmanbaria-2 lawmaker said the rapid increase in bank borrowing had pushed total government borrowing beyond the set ceiling for the fiscal year.
“Within just 52 days, it has taken Tk44,500 crore in loans. As a result, the borrowing has already surpassed the budget target for this fiscal year,” she said.
She said the annual borrowing target from the banking sector was fixed at Tk1.04 lakh crore, while total borrowing had already reached Tk1,12,761 crore, or 108% of the target, between July and April 9, according to Bangladesh Bank data.
Rumeen Farhana also pointed out that Tk68,229 crore was borrowed between July and February 16 under the interim government.
She further said revenue collection had fallen significantly short of the target, with a shortfall of around Tk75,000 crore in the first eight months of the fiscal year, and sought clarification from the finance minister on measures to expand the tax net and improve revenue mobilisation.
In response, the finance minister said the current administration had been in office for about two months since February, adding that much of the situation reflected carryover issues from the previous government.
“Much of this is a carryover from the previous administration, so these figures are not entirely applicable to us,” he said.
He added that the government’s economic policy aimed to gradually reduce dependence on domestic bank borrowing in the upcoming budget.
“In the upcoming budget, you will see how the government plans to gradually reduce borrowing from local banks,” he said.
The minister also said the government had inherited significant economic challenges, noting pressure on businesses and the banking sector.
“Businesses are facing existential threats. They are unable to repay bank loans or pay employee salaries, and factories are becoming redundant. It will take time to restore stability, but we are committed to doing so,” he added.