Bank borrowing target set at Tk1,32,395cr

The government plans to borrow Tk 1,32,395 crore from local banks in FY2023-24 to finance the projected deficit in the next national budget.

Finance Minister AHM Mustafa Kamal disclosed the target on Thursday, while presenting the proposed budget of Tk 7,61,785 crore for FY24.

The bank borrowing target is 14.70 per cent higher than the revised target of Tk 1,15,425 crore for the outgoing FY2022-23.

In FY23, the government had initially set the target at Tk 1,06,334 crore.

In the upcoming fiscal year, the overall budget deficit is expected to be Tk 2,61,785 crore, which is 5.2 percent of the GDP.

Of the remaining deficit, Tk 1,02,490 crore will come from external or foreign sources and the rest will be financed by various internal sources.