Government borrowing in Bangladesh has reached Tk 595.16 billion during the first four months of the fiscal year, primarily to cover budget deficits and repay central bank debts, according to a confidential Bangladesh Bank report. This amount, borrowed via treasury bills and bonds between July and October, resulted in a net borrowing of Tk 204.09 billion. The shift toward bank borrowing, compared to the previous fiscal year’s Tk 31.82 billion deficit, is largely due to lower revenue mobilization, which fell by 6.07%, or Tk 45.84 billion, from July to September as per National Board of Revenue data.
With declining revenue and economic challenges, officials expect recovery in the second quarter. To curb inflation, the government has leaned on commercial banks rather than central bank borrowing. Investment in government securities has risen as commercial banks shift from private-sector loans, driven by high returns and economic security. ADP implementation in Q1 fell to its lowest in 15 years, spending only Tk 132.15 billion, or 4.75%, of its budget.
Source for more details:
