The government of Bangladesh witnessed a significant increase in bank borrowing, with Tk13,015 crore borrowed in May alone, surpassing the combined borrowing of Tk7,663 crore in the previous 10 months. Data from the central bank reveals that the government’s borrowing from the central bank amounted to Tk71,610 crore at the end of May, compared to Tk2,146 crore during the same period last year. The government’s total borrowing from both the central bank and scheduled banks in the current fiscal year reached Tk92,288 crore, constituting 82.68% of the annual target. Revenue collection struggles, with only 67% of the target achieved in the first 10 months, have led to increased bank borrowing. However, experts suggest that higher borrowing from scheduled banks may alleviate inflation to some extent. The growing deposits in the banking sector and reduced demand for private sector loans have also contributed to increased government borrowing.
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