Govt cuts savings tools borrowing target by 49%

The government has set a target to borrow Tk 18,000 crore from national savings instruments in the fiscal year 2023-24, which is 10 per cent lower than the revised budget and 49 per cent lower than the current fiscal year.

Finance Minister AHM Mustafa Kamal on Thursday presented the proposed budget of Tk 761,785 crore after getting the cabinet’s approval.

In FY23, the government initially fixed the target of borrowing from savings tools at Tk 35,000 crore, but then it revised it downward at Tk 20,000 crore.

The government’s borrowing from savings certificates has decreased due to the current rising inflation and low annual development expenditure, industry insiders said.

In April of this fiscal year, net borrowing from savings tools stood at Tk 582 crore, down from Tk 1,015 crore in the same month of the previous fiscal year.

In the upcoming fiscal year, the overall budget deficit is expected to be Tk 261,785 crore which is 5.2 per cent of the country’s gross domestic product (GDP).