The government borrowed Tk 24,245 crore from the banking sector in the first three months of the current fiscal year, while it repaid Tk 6,926 crore more than it borrowed during the same period last year.
According to Bangladesh Bank data, the government borrowed Tk 23,227 crore from commercial banks and Tk 1,017 crore from the central bank between July and September.
The government aims to borrow Tk 1.12 lakh crore from the banking system in the current fiscal year, achieving 21.65% of the target in the first three months.
Economists say revenue shortfalls have increased the government's reliance on bank loans to meet public spending. Meanwhile, government borrowing is putting pressure on banks' income and profits as lending rates decline.
-AJM