To finance the deficit, Tk 127,000 crore is proposed to be sourced domestically and Tk 116,000 crore from external sources

To finance the deficit, Tk 127,000 crore is proposed to be sourced domestically and Tk 116,000 crore from external sources

The government has proposed borrowing nearly Tk 1.56 trillion in foreign loans in the next fiscal year, which is 2.28 percent of GDP

Higher government borrowing from banks may reduce private sector credit and production

The relationship between budget deficits and inflation is not automatic. It depends largely on how the deficit is financed, the state of aggregate demand, the output gap, and the…