The government’s move to adopt heavily from the banking sector has increased to meet the budget deficiency.
The government takes about 75 percent of the internal loans from the banking sector. On the other hand, taking loans from thenon-banking sector, especially savings instruments, has declined. still, the interest rate in this sector is the loftiest. The government is to expend plutocrat about doubly fold to pay interest of savings instruments.
According to sources in the finance division, the government pays the savings instruments ’ liability through taking loans from the banking sector.
According to the statistics of the finance division of the Ministry of Finance, the quantum of net borrowing of the government from internal sources in the last financial time 2021- 2022 was Tk 1 lakh 8 thousand 978 crore. Out of this, the net loan taken from the banking system was Tk 79 thousand 211 crore, which is 73 percent of internal loan. From the banking sector, Tk 43 thousand 456 crores from storeroom bonds, 25 thousand 755 crores from storeroom bills and 10 thousand crore from sukuk have been taken.
In the first three months of the current financial time 2022- 2023( July- September 2022), the government’s net borrowing from the banking system stood at Tk,550 crore. In the same period of the last fiscal time 2021- 2022, the quantum of net borrowing of the government from the banking system was Tk,483 crores. Consequently, in the first three months of the current fiscal time, the borrowing of the government from the banking system is much lower than that of the former fiscal time. still, it’s reported that the quantum of borrowing from the bank has increased in December.
Meanwhile, in the last fiscal time 2021- 2022, the net borrowing taken from thenon-bank sector was Tk 29 thousand 767 crore. This is only 27 percent of the internal debt. Among thenon-banking sector, Tk,907 crore was espoused from savings instruments( the target blazoned in the budget was Tk,000 crore) and Tk,860 crore was espoused from other sectors.