The government has fixed a target of borrowing Tk76,452 crore from local banks for 2021-22 fiscal year to finance the projected budget deficit, as announced in the budget on Thursday.
The bank borrowing target is 4.13% lower than the revised target for the outgoing 2020-21 fiscal year.
In FY21, the government had initially set a Tk84,980 crore borrowing target.
In the upcoming fiscal, the overall budget deficit is expected to be Tk214,681 crore, about 6.2% of the national gross domestic product (GDP).
Of the remaining deficit, Tk101,228 crore will come from external or foreign sources and the rest will be financed through internal sources like savings certificates.
Expenditure in the next fiscal year has been estimated at Tk603,681 crore, while the projected revenue is Tk389,000 crore.