The government’s domestic borrowing from banking and non-banking sources rose significantly in July-October FY25, reaching Tk 392.18 billion, or 24.4% of the annual target of over Tk 1.60 trillion. This contrasts sharply with the Tk 22.95 billion borrowed in the same period of FY24.
Bank borrowing stood at Tk 172.80 billion, marking a turnaround from a net repayment of Tk 37.03 billion in FY24. Non-banking borrowing, driven by robust net sales of National Savings Certificates (NSCs), totaled Tk 219.38 billion, with NSC net sales alone contributing Tk 51.07 billion, reversing a net repayment of Tk 23.05 billion in FY24.
Experts, including Dr. M Masrur Reaz of Policy Exchange of Bangladesh, attribute the borrowing surge to revenue shortfalls, high inflation, and disruptions from natural calamities and supply chain issues. Reaz emphasized the urgent need for fiscal reforms, including broadening the tax base and reducing unnecessary tax exemptions, to ensure sustainable revenue growth.
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