Govt net borrowing falls below target in first eight months

The government's total net domestic borrowing -- from the banking system and non-banking sources -- reached Tk 361.76 billion in the July-February period of the current fiscal year (FY2024), according to Bangladesh Bank statistics.
This represents around 23 per cent of the target set in the national budget for 2023-24.
The figure is lower than the Tk 511.76 billion borrowed during the same period in FY2023, which was 36.4 per cent of the target for the 2022-23 budget.
The government's net borrowing from the banking system stood at Tk 249.69 billion in FY2024, or 18.9 per cent of the budget target. This compares to Tk 466.06 billion borrowed during the same period in FY2023.
The government's net borrowing from non-banking sources increased to Tk 112.06 billion in FY 2024, representing 48.7 per cent of the budget target. This is up from Tk 45.7 billion, or 18.3 per cent of the target, in the same period of FY2023.
People familiar with the development told The Financial Express that the net borrowing declined due mostly to increased budgetary support from international agencies in the current fiscal year.

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