Govt to borrow Tk 385 billion from banks to bridge deficit in new budget
Staff Correspondent, bdnews24.com
Published: 04 Jun 2015 09:10 PM BdST Updated: 04 Jun 2015 09:10 PM BdST
The government has said in the budget proposed for FY 2015-16 that it aims to borrow Tk 385.23 billion from banks to cut the deficit.
The target for bank borrowings is 2.2 percent of the GDP, according to Finance Minister AMA Muhith.
On Thursday, Muhith presented in Parliament his budget proposal of Tk 3 trillion with a deficit of Tk 866.57 billion.
Businesses, however, raised eyebrows on the target as it saw a Tk 68.09 billion rise in borrowing from the current budget.
In an instant reaction, Dhaka Chamber of Commerce and Industry President Hossain Khaled told bdnews24.com, “We fear a decrease in private sector credit inflow.”
During his budget speech, Muhith said that the projected deficit amounted to 5 percent of the GDP.
The government will borrow Tk 565.23 billion from domestic sources, which is 3.3 percent of the GDP.
Another Tk 301.34 billion, or 1.8 percent of the GDP, will be borrowed from external sources.
Of the domestic borrowing, Tk 385.23 billion will be sourced from the banking sector and the rest will be sourced from savings instruments and non-bank sectors.
The ongoing 2014-15 budget had set a target to raise Tk 432.77 billion from domestic sources, which was later revised to Tk 547.14 billion.
Businesses allege that high bank borrowing by the government hinders private sector credit inflow and hikes the interest rate.
-
‘Fiscal blueprint needed to restore confidence in economy’
-
Govt to lay out plan to tackle price hike
-
Pakistan bans imports of non-essential luxury goods
-
China wants to expand BRICS bloc of emerging economies
-
World Bank to give $30bn to shore up food security
-
Panel for 58% bulk power tariff hike
-
BBS reports fall in April food inflation
-
Leaders weigh costs of confronting Russia
-
Fiscal policy should be designed to steer Bangladesh through crisis: Toufique Khalidi
-
Bangladesh to roll out plan to tackle price hike, supply crunch
-
Pakistan bans imports of all non-essential luxury goods: minister
-
China says it wants to expand BRICS bloc of emerging economies
-
World Bank to offer $30 bn as Ukraine war threatens food security
-
Panel recommends hiking bulk power tariff by 58% to cut subsidy
Most Read
- Bangladesh Bank devalues taka again as US dollar hits record high
- Bangladesh announces Padma bridge tolls, a step closer to inauguration
- Woman attacked at Bangladesh railway station for her outfit
- Abdul Gaffar Chowdhury, a journalist who wrote famous Language Movement song, dies at 88
- Exhausted, weak wild elephant prefers to stay close to humans
- Dollar surges past Tk 100, but still ‘hard to find’
- Dhaka traffic stalls as overturned van blocks key road
- Hasina to announce opening day of Padma Bridge within a week
- Russia uses Ukraine captives to push false narrative of Nazi purge
- RAB arrests Chhatra League leader Delwar Hossain Sayedee with weapons