Government borrowing from both foreign and domestic sources is set to increase by more than 20 per cent in the next fiscal year to meet the budget deficit.
According to the proposed budget, it's expected to receive a total of Tk 2.41 trillion from external and domestic sources against the revised of Tk 2.01 trillion in the outgoing fiscal.
Original target of such borrowing was Tk 2.11 trillion for the outgoing fiscal year (FY), 2021-22.
Of the total for the next fiscal year, Tk 1.46 trillion has been proposed to be available from domestic sources while Tk 954.58 billion is expected to borrow from overseas sources.
Out of the total domestic borrowing target, Tk 1.06 trillion has been proposed from the country's banking system and Tk 400.01 billion targeted from non-bank sources.
The bank borrowing for the FY'23 would be enhanced by nearly 21 per cent than the revised target of Tk 872.97 billion for the outgoing fiscal year, according to the proposed budget documents. The government's original bank borrowing target was Tk 764.52 billion for FY'22.
Under the arrangement, the government will borrow Tk 681.92 billion issuing long-term Bangladesh Government Treasury Bonds (BGTBs), generally known as bonds, while the remaining Tk 381.42 billion through treasury bills (T-bills).
Currently, three T-bills are being transacted through auctions to adjust government borrowing from the banking system. The T-bills have 91-day, 182-day and 364-day maturity periods.
