July-Mar net borrowing exceeds fiscal\\\'s target

Arafat Ara | Published: May 09, 2014 00:00:00 | Updated: November 30, 2026 06:01:00

The government's net borrowing from savings instruments during the first three quarters of the current fiscal exceeded the total fiscal year's target by 50 per cent amid less withdrawal of money by savers.
The Department of National Savings (DNS) data shows the net investment in the state-run savings tools reached Tk 74.60 billion in the first nine months of the fiscal year (FY) 2013-14 against the entire fiscal's target of Tk 49.71 billion fixed by the government earlier.
Such a big rise in the net sales of savings certificates during the July-March period of the fiscal came after a continuous sluggish trend over the last couple of FYs.
The net sales stood at only Tk 6.92 billion in the July-March period of the FY 2012-13.
The overall sales of savings schemes were not that high during the period. Still the net sales showed a significant rise mainly due to lower encashment by the savers, said an official.
The net sales during the period stood at Tk 171.81 billion while the withdrawal of money stood at Tk 97.21 billion, the data shows.
Most of the three-year savings instruments matured in the last fiscal year. Other schemes including the five-year savings tools will mature next year, he mentioned.
The auto reinvestment facility for some savings instruments was another cause of it, he added.
The monthly net sales stood at Tk 12.15 billion in March last. The figure was only Tk 1.49 billion in March last year.
Dr Akbar Ali Khan said if the government's net borrowing from savings certificates went up, it would help lessen inflationary pressure.
He said the government would not require to borrow fewer amounts due to such an increased volume of borrowing from savings tools.
Dr Khan, however, said if the present rising trend of the government's borrowing from savings schemes continued it might have an impact on the overall deposit growth in the banking system. "But still the situation is normal," he added.