The government borrowed a net Tk9,209 crore from the banking sector in the first 13 days of the current fiscal year, as expenditure exceeded revenue income, according to a report published on July 28. The government’s outstanding borrowing from banks now stands at Tk6,94,684 crore.

Of the new borrowing, Tk5,414 crore came from Bangladesh Bank and Tk3,795 crore from commercial banks. During the same period of the previous fiscal year, the government’s borrowing position with the central bank was negative Tk4,608 crore, while it had borrowed Tk6,112 crore from commercial banks. Its outstanding borrowing is now Tk99,467 crore at the central bank and Tk5,95,219 crore at commercial banks.

Former Bangladesh Bank chief economist Dr Mustafa K Mujeri said budget expenditure is set against revenue targets, but actual collection often falls well short, requiring additional bank borrowing. In the previous fiscal year, the government borrowed Tk1,34,571 crore from banks, above its revised target of Tk1,18,000 crore. The current fiscal year’s budget sets a Tk1,12,000 crore bank-borrowing target.