Government to borrow Tk 30,107 crore from treasury bills and bonds in October-December

Earlier, the government's net borrowing in the September quarter was more than Tk 35,000 crore. Meanwhile, data from the National Board of Revenue has been cited as showing that revenue collection in the current fiscal year has been about Tk 29,000 crore less than the target.

Government expenditure is also increasing due to the implementation of the new pay structure. The basic salary under the new pay structure is to be implemented in three phases, and there are plans to provide various allowances from January 2028. This will result in an additional expenditure of Tk 1,05,380 crore over three years. In the current year alone, additional expenditure may be Tk 37,372 crore.

According to economists, if the government's borrowing from the banking sector increases, interest expenditure in the budget may rise and extra pressure may be created on revenue collection. There is also concern that this may affect credit flow to the private sector.

CPD Distinguished Fellow Fahmida Khatun said the government's growing dependence on banks may indicate a liquidity crisis in the exchequer. She also commented that borrowing in this manner is not a sustainable method in the long term.

Dr Md Ejazul Islam, Director General of the Bangladesh Institute of Bank Management, said the government needs additional money to implement the pay scale. If bank loans increase to finance it, interest expenditure will also rise, so more importance must be given to revenue collection.

According to a banker, as demand for credit in the private sector is currently relatively low, the immediate impact of the government's borrowing is limited. However, if credit demand rises, it may affect the private sector.