Tight fiscal steps cut bank borrowing

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Government bank borrowing reduced by Tk 700 crore in the first month of the present caretaker government thanks to a number of tighter fiscal measures and increased revenue collection.

According to finance ministry sources, the amount of the government borrowing from banks was Tk 6,300 on January 12, the day the current government took office, and the figure was Tk 5,602 crore on February 13.

Finance division sources said they are following strict measures regarding fund realisation for different proposals of the ministries.

The government has also taken stern monitoring initiatives regarding revenue spending, sources added.

Meanwhile, revenue collection also grew by 9.06 percent during July-January period of the current fiscal increasing the total amount of government revenue to Tk 18, 732 crore.

January alone saw a growth of 8 percent in terms of revenue collection comparing to that of three percent during the corresponding period of the last fiscal.

Finance ministry officials expected a further fall in borrowing in the current month when a deal regarding the sale of Rupali Bank’s 93 percent stake is signed next month.

This will add $458 million or Tk 3,160 crore to the government exchequer, sources added.

Meanwhile, National Board of Revenue (NBR) officials expected a 14 percent growth in revenue collection by the end of the current fiscal that would help lower the government bank borrowing further.

However, revenue collection during the July-January period of the current fiscal fell Tk 5,000 crore short of the target, which was Tk 23,732 crore.

Drop in tariff rates and huge debts by several state-owned companies have led to the fall, NBR officials informed Finance Adviser AB Mirza Azizul Islam during a meeting on Thursday.

Meanwhile, a total of Tk 1,620 crore might not be added to government exchequer due to a number of tax-related pending cases, according to sources.

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