Govt has increased its bank borrowing target by more than 47% to Tk. 279 Billion to finance the current fiscal year deficit.
The decision was taken at a meeting of CDMC at secretariat with finance secretary Md. Tareque in the chair.
The government borrowing from banking system increased by more than three times until March 25 this year compared to the corresponding period of the last year.
The government's net borrowing from banking system shot up to Tk 169.67 billion during the period under review as against Tk 48.92 billion in the same period the previous year, according to Bangladesh Bank statistics.
During the period, the government borrowed Tk 113.77 billion from the scheduled banks through issuing T-bills and bonds during the period, while Tk 55.90 billion was borrowed from the central bank to finance the budget deficit.
Market operators expressed that increased bank borrowing target saying that it might hit the liquidity position of commercial banks, particularly the primary dealers (PDs), besides affecting investment in the private sector.