In the last fiscal year 2020-21, the government's net loan from the banking system stood at Tk26, 078 crore, which is only 32.70% of the target of borrowing from banks.
According to the Bangladesh Bank, the government had set a target of borrowing Tk84,980 crore from the banking system to finance the deficit in the outgoing 2020-21 budget. However, in the revised budget, the target for bank loans was reduced to Tk79,749 crore.
An analysis of the data of the central bank shows that including the loan of Tk26,078 in the last fiscal year, the government's accumulated net bank loan stood at Tk2,03,901 crore. On 30 June last year, the government's bank loan balance was Tk1,77,000,823 crore.
The revised budget reduced the bank loan target to Tk79,749 crore due to higher than expected loans from savings certificates. As a result, the government has taken a loan of Tk26,078 crore and at the end of the financial year, the debt stood at 33%.
People concerned said bank loans were not needed as the government's loans from savings certificates were increasing. At the end of the financial year, the government's bank loans increased slightly as the implementation of the Annual Development Program (ADP) accelerated. At other times of the financial year, the government did not show much interest in taking bank loans to implement the ADP.