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Govt to borrow Tk30,150cr from savings certificates in next fiscal year

  • Published at 06:53 pm June 1st, 2017
Govt to borrow Tk30,150cr from savings certificates in next fiscal year
The government will take loans of Tk30,150 crore from savings certificates in the next fiscal year, though there will be a heavy burden of interest payments. Finance Minister AMA Muhith made the statement in his speech on the budget at Jatiya Sangsad on Thursday. In the speech, he said: “The budget deficit in the next fiscal year will be Tk1,12,275 crore, which is 5% of our GDP. While the deficit will increase slightly compared to the previous year due to increased allocations for development activities and in the social security sector, it is unlikely to have any negative macroeconomic impact due to robust GDP growth.” Muhith added that Tk51,924 crore (46% of the budget deficit) would  be financed from external sources while Tk60,352 crore  (54% of the deficit) would be sourced domestically. Of the domestic sources, Tk28,203 crore (48% of the deficit) is expected to come from the banking system and Tk32,149 crore (52% of the deficit) from savings certificates and other non-banking sources, said the finance minister.