Savings certificates, non-bank sources to be tapped for domestic financing

A substantial portion of the proposed 6.2 per cent of GDP budget deficit in the next fiscal will be met from the local sources, where a total of Tk 370.01 billion will be taken out from the savings certificates and other non-bank sources.

Finance Minister AHM Mustafa Kamal placed this outline while unveiling the national budget in parliament on Thursday giving a total estimated expenditure of Tk.6.04 trillion, which is 17.5 per cent of GDP.

He said the overall budget deficit for FY22 will be around Tk 2.15 trillion, which is 6.2 per cent of GDP, up slightly from the last budget's 6.1 per cent.

"Out of the total deficit, Tk 1.01 trillion will be financed from external sources, while Tk 1.13 trillion from domestic sources of which Tk 764.52 billion, or two-thirds will come from the banking system, and the remaining third, Tk 370.01 billion, from savings certificates and other non-bank sources.

He mentioned that the government has set the target for total revenue income in the FY22 at Tk 3.89 trillion, which is11.3 per cent of GDP.

"Out of this, Tk 3.30 trillion will be collected through the NBR sources while revenue from non-NBR sources has been estimated at Tk 160 billion and the non-tax revenue is estimated to be Tk 430 billion".