The budget deficit is likely to be much lower than estimated for the last FY23 as spending from the operating and development outlays would remain well short of the targets at the end of the FY.
The deficit financing stood only at Tk81,016 crore, 1.82% of the gross domestic product (GDP), until April last from the FY's total outlay of Tk242,000 crore, 5.4% of GDP, Ministry of Finance (MoF) data showed.
Officials attributed it mainly to the austerity measures on budgetary spending imposed by the government amid the domestic and global economic situation.
As part of the measures, the government cut some less important projects from the development budget.
They, however, said the deficit financing would have increased to some extent in the last couple months of the just out FY, but still the budget deficit would remain below 5% of GDP at the end of June, 2023.
The total budget outlay for FY23 was Tk678,000 crore.
According to the MoF, the government ministries and agencies utilized Tk83,819 crore, 32.29% of the Tk259,000 crore development budget, and only Tk271,000 crore, 65.8% of the Tk411,000 crore operating budget, during the July-April period of the last FY.
In the same period of previous FY22, the development expenditure was 34.95% of the revised budget outlay and the operating budget spending rate was 63.9% of the revised budget, official data showed.
According to the MoF, the government borrowed Tk67,474 crore until April last from domestic sources like banks, non-banking financial institutions and savings certificates, and Tk30,308 crore from external sources, official data showed.
Among the biggest sectors of the Tk411,000 crore operating budget, the defense sector spent lowest 54.8% until April last, while transport and communication sector 57.6%, and the public order and safety sector 60.2%.
The government spent highest on agriculture and interest payment sectors during the first 10 months of the last FY.
The agriculture sector's operating budget expenditure was Tk25,065 crore, 96.5% of its total Tk25,978 crore allocation.
The government has also spent the highest amount in interest payment as it paid Tk75,287 crore, 93.70% of total Tk80,375 crore allocations in the operating budget for FY23.
