Govt sets bank borrowing target at Tk 1,06,334cr

The government has fixed a target of borrowing Tk 1,06,334 crore from local banks for the 2022-23 fiscal year to finance the projected budget deficit.

Finance Minister AHM Mustafa Kamal on Thursday presented the proposed budget with an outlay of Tk 6,78,064 crore in parliament after the cabinet’s approval.

The bank borrowing target is 21.82 per cent higher than the revised target for the outgoing 2021-22 fiscal year. In FY22, the government had initially set the borrowing target at Tk 76,452 crore.

In the upcoming fiscal year, the overall budget deficit is expected to be Tk 2,45,064 crore, which is 5.5 per cent of the national gross domestic product (GDP).

Of the remaining deficit, Tk 98,729 crore will come from external or foreign sources and the rest will be financed through internal sources like savings certificates.