Govt sets bank borrowings target at Tk 1.04 trillion

The government has slashed its bank borrowing target by 24.36 per cent for the next fiscal year (FY) 2025–26, setting it at Tk 1.04 trillion.

For the current fiscal year 2024–25, the bank borrowing target was initially set at Tk 1.38 trillion. It was later revised down to Tk 990 billion.

Despite this, the new target for FY26 is 5.05 per cent higher than the revised figure for this year.

While unveiling the national budget for FY26 through a pre-recorded televised speech, finance adviser Dr Salehuddin Ahmed on Monday proposed a smaller budget for the upcoming fiscal year, narrowing the deficit and prompting a reduction in the planned borrowing from the banking system.

According to budget documents, the total deficit including grants for FY 2025–26 is projected at Tk 2.21 trillion.

Of the amount, Tk 960 billion is expected to come from foreign sources, while the remaining Tk 1.25 trillion will come from domestic sources.

Of the internal financing, Tk 1.04 trillion is to be generated from banks and Tk 210 billion from non-bank sources, including Tk 125 billion from national savings certificates.