Deficit financing of the country’s budget in the first seven months of the current fiscal year jumped by 73 per cent over the same period of the past fiscal year.
Statistics available with Bangladesh Bank showed that the related deficit stood at Tk 350.84 billion in July-January period of FY18, which was Tk 202.59 billion in the same period of FY17.
Financing from domestic sources reached Tk 151.16 billion during the period of this fiscal year under review, which was Tk 123.22 billion in the same period of the past fiscal year.
For the domestic financing, the government entirely depends on non-bank borrowing and that is basically through the sale of savings certificates.
In the first seven months of the current fiscal year, net borrowing from the non-bank sources stood at Tk 301.46 billion.
But net borrowing from the banking system turned negative due to higher repayment of previous loans against lower fresh borrowing, with the amount reaching Tk 150.30 billion.
The central bank put the deficit financing during July-January period of this fiscal at 1.58 per cent of projected Gross Domestic Product (GDP) against 4.80 per cent as envisaged in the budget for FY18.