Higher government borrowing from banks may reduce private sector credit and production
June 11, 2026
Senior Correspondent
bdnews24.com
The government plans to borrow Tk 1.12 trillion from the banking system in the new fiscal year, equivalent to 1.64 percent of total GDP.
In the outgoing fiscal year, the original budget set the borrowing target from this sector at Tk 1.04 trillion, which was later revised upward to Tk 1.18 trillion, which means the new target is Tk 80 billion higher than the original budget of fiscal year 2025-26, but Tk 60 billion lower than the revised estimate.
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According to the BBS provisional figures, Bangladesh’s economy grew by 4.14 percent in the fiscal year ending Jun 30, 2026
