Govt bank borrowing stands at Tk 4,597cr in July-Sept period
The net government bank borrowing stood at Tk 4,597.02 crore in July-September period of the current fiscal 2021-2022. The total borrowing at the end of August, thus stood Tk 7,519 crore.
The government net domestic borrowing from the banking sector has remained low since the Covid outbreak amid slow ADP spending, higher flow of external debt and payment of state-owned entities' surplus fund to the government, Bangladesh Bank (BB) officials said.
A rebound in tax collection by National Board of Revenue (NBR) also contributed to the lower government borrowing from banks despite lower net sales of national savings certificates, they said.
The government's bank borrowing includes borrowing from BB and from the scheduled banks. In the three months of the current fiscal year, the government's borrowing from the central bank declined against an increase in its borrowing from the scheduled banks.
As per a BB report, the government repaid Tk 9,524.16 crore to BB but borrowed Tk 14,121 crore from scheduled banks against Bangladesh government treasury bills and bonds.
With repayment to the BB, the government's outstanding loans with the central bank dropped to Tk 14,819.38 crore at the end of September 2021 from Tk 24,343.54 crore three months ago.
The net government bank borrowing was Tk 26,304.1 crore in FY21 against Tk 70,714.8 crore in FY20.
The borrowing dropped significantly when the government received a significant amount of external loan from different multinational lenders.
In FY21, the government's external debts increased by $7.7 billion to $59.35 billion from $51.65 billion at the end of FY20. The government's external debts grew by $5.38 billion in FY19 and $5.49 billion in FY20. The increase was $2.69 billion in FY17 and $6.07 billion in FY18.
Besides receiving external debts, the government received around Tk 17,000 crore from different state-owned organisations as they were compelled to do so under the Deposit of Surplus Funds of Autonomous, Semi-Autonomous, State-Owned, and Public Non-Financial Corporations into the Government Treasury Act 2020.
Apart from the submitted money, some other state-owned entities would continue to deposit their surplus fund to the government as per the law. Though the government targeted to borrow Tk 76,452 crore from banking sector in FY22, the actual figure might remain low until or unless ADP implementation achieves its annual target.