The government has fixed a higher borrowing target from banks for the fiscal year 2020-21, in order to finance the projected budget deficit.
Expenditure in the next fiscal year has been estimated at Tk5,68,000 crore, while the projected revenue is Tk3,82,013 crore.
Consequently, the overall budget deficit is expected to be Tk1,85,987 crore, about 5.8% of the national GDP.
Of the budget deficit, Tk84,980 crore will be borrowed from the banking system, while Tk20,000 crore will come from national savings schemes.
In the FY2019-20, the government had set a Tk47,364 crore borrowing target from banks.
Finance Minister AHM Mustafa Kamal placed the national budget for FY2020-21 in parliament on Thursday.
