The government plans to raise around 85.4% of its domestic funding to meet the budget deficit through borrowing from the banking sector.
In the proposed budget for FY 2024-25, Finance Minister Abul Hassan Mahmood Ali today announced that the government needs to collect a total of Tk 2.56 lakh crore from both foreign and domestic sources to cover the budget shortfall.
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Of this amount, Tk 95,100 crore will come from foreign grants and loans, while Tk 1.61 lakh crore will be sourced domestically.
Notably, the government aims to borrow Tk 1.37 lakh crore from the banking sector to address the budget deficit.
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According to Bangladesh Bank data, the government's net borrowing from the banking sector amounted to Tk 45,557 crore from last July to April 22 this year, after repaying Tk 19,874 crore to the central bank.