• Monday, Nov 18, 2019
  • Last Update : 11:13 am

Govt sets higher bank borrowing target to finance budget deficit

  • Published at 05:42 pm June 13th, 2019
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Tk47,363cr will be borrowed from banking system

The government has fixed a higher borrowing target from banks for FY2019-20, in order to finance the projected budget deficit. 

Expenditure in the next fiscal year has been estimated at Tk5,23,190 crore, while the projected revenue is Tk3,81,978 crore. As a result, the overall budget deficit (excluding grants) is expected to be Tk1,45,000 crore, about 5% of the national GDP.

Of the budget deficit, Tk77,363 crore (net) will be financed from domestic sources, while Tk63,848crore (net) will be financed from external sources.

According to the budget statement, Tk47,363 crore out of the Tk77,363 crore financed from domestic sources will be borrowed from the banking system, while Tk27,000 crore will come from National Savings Schemes, and Tk3,000 crore from non-bank sources.

In FY2018-19, the government had set a Tk42,029 crore borrowing target from banks.

Finance Minister AHM Mustafa Kamal placed the national budget for FY2019-20 in parliament on Thursday. This is the first budget since the Awami League government took charge for the second consecutive term after the general election on December 30 last year.

Read the full budget speech for FY20 here.