Govt to secure large loans from banks and savings bonds

To overcome budget deficit, the government is increasing its reliance on bank loans. For the upcoming fiscal year 2024-2025, similar to the current fiscal year, the government has planned to borrow a significant amount from banks. This accounts for nearly 54% of the deficit and 17% of the total budget.

To cover the deficit, the government has set a target to borrow Tk 1,37,500 crore from banks. This amount exceeds the target of the current fiscal year by more than Tk 5,105 crore. On the other hand, to reduce interest payments, the government has reduced its reliance on savings certificates in the budget.

For the fiscal year 2024-2025, the government plans to borrow Tk 15,400 crore by selling savings certificates. This is Tk 2,600 crore less than the current fiscal year.