Govt borrowing from savings tools set to exceed revised target
Tuesday, 26 June 2007
FE Report
The government's borrowing through sales of savings certificates is set to exceed the revised target by at least Tk 11 billion in the current fiscal, which will put additional pressure on servicing of its internal debt.
An increased current expenditure coupled with a poor growth in the tax-revenue collection forced the government to scale up its borrowing target to Tk 28 billion in the revised budget for fiscal year (FY) 2006-07 from the original target of nearly Tk 26 billion, sources said.
Official figures showed that the government's borrowing through savings instruments during the July-April period of the current fiscal already surpassed the revised target by Tk 5.78 billion.
Its net borrowing from such instruments reached Tk 33.79 billion until April of FY 2006-07, the figures revealed.
An official source indicated that the government's net borrowing could hit Tk 39 billion by the end of June 2007.
However, the government's borrowing through savings tools during the July-April period of the current fiscal also marked a 32.36 per cent rise over that of the corresponding period of FY 2005-06.
It borrowed a net amount of Tk 25.52 billion during the July-April period of the last fiscal.
On the other hand, the government had to provide for an increased amount for interest payments in the revised budget for this fiscal on account of servicing its internal debt.
It made interest payments to the tune of Tk 40.93 billion until April of FY 2006-07 compared to Tk 36.56 billion in the same period of last fiscal, figures showed.
Savings certificates and bonds worth Tk 91.83 billion out of the total sales at Tk 125.61 billion were encashed by the investors during the last July-April period.
Meanwhile, the government's tax-revenue collection fell short of the revised target by around Tk 28 billion during the July-April period of fiscal 2006-07.
The National Board of Revenue (NBR) collected tax-revenue amounting to about Tk 284.32 billion until April of the current fiscal against the target of Tk 312.32 billion.
The government's borrowing through sales of savings certificates is set to exceed the revised target by at least Tk 11 billion in the current fiscal, which will put additional pressure on servicing of its internal debt.
An increased current expenditure coupled with a poor growth in the tax-revenue collection forced the government to scale up its borrowing target to Tk 28 billion in the revised budget for fiscal year (FY) 2006-07 from the original target of nearly Tk 26 billion, sources said.
Official figures showed that the government's borrowing through savings instruments during the July-April period of the current fiscal already surpassed the revised target by Tk 5.78 billion.
Its net borrowing from such instruments reached Tk 33.79 billion until April of FY 2006-07, the figures revealed.
An official source indicated that the government's net borrowing could hit Tk 39 billion by the end of June 2007.
However, the government's borrowing through savings tools during the July-April period of the current fiscal also marked a 32.36 per cent rise over that of the corresponding period of FY 2005-06.
It borrowed a net amount of Tk 25.52 billion during the July-April period of the last fiscal.
On the other hand, the government had to provide for an increased amount for interest payments in the revised budget for this fiscal on account of servicing its internal debt.
It made interest payments to the tune of Tk 40.93 billion until April of FY 2006-07 compared to Tk 36.56 billion in the same period of last fiscal, figures showed.
Savings certificates and bonds worth Tk 91.83 billion out of the total sales at Tk 125.61 billion were encashed by the investors during the last July-April period.
Meanwhile, the government's tax-revenue collection fell short of the revised target by around Tk 28 billion during the July-April period of fiscal 2006-07.
The National Board of Revenue (NBR) collected tax-revenue amounting to about Tk 284.32 billion until April of the current fiscal against the target of Tk 312.32 billion.