Govt\\\'s net borrowing from savings tools crosses target

The government's net borrowing from state-owned savings certificates during the July- January period has already surpassed the target set for the entire current fiscal year, amid less withdrawal of investment by savers.
According to official data, the net investment in the savings tools reached Tk 49.83 billion during the first seven months of the FY 2013-14 while the government had fixed its net borrowing target at Tk 49.71 billion for the entire FY.  
It was predicted that if the trend continues, the government's net borrowing could cross Tk 60.0 billion in ongoing fiscal year.
The net sales of savings certificates have been continuing for a long time. The net sale was only Tk 3.63 billion in the July-January period of FY 2012-13.
The significant rise came following lower encashment by the savers, said officials.
Most of the three-year savings instruments matured in the last fiscal year. Other schemes including the five-year savings tool will mature next year, they mentioned.
Auto reinvestment facility for some savings instrument is another cause for such development, they added.
The data showed that the gross sales of the savings certificates were recorded at Tk 127.01 billion and encashment Tk 77.18 billion during the July- January period of present FY.  
Earlier, government attained a booming sale in FY 2009-10, the official added.