Government borrows Rs3.2tr in 45 days

The government borrowed Rs3231 billion (Rs3.2 trillion) from scheduled banks during the last 45 days (May 15 to June 28) of the fiscal year 2023-24 despite a 30 per cent growth in revenue generation. The latest State Bank data shows that the government borrowed Rs71.8bn per day during the period, reflecting the government’s massive spending of the government. In the budget for FY25, the government has resorted to heavy taxation in order to generate 40 per cent more revenue than what it did the previous fiscal year. Although the government has been hinting at imposing more taxes for increasing revenue, there seems to be little effort to curb spending in order to avoid borrowings. Government borrowing from scheduled banks reached a record high of Rs8.564tr during FY24, more than twice the Rs3.716tr it borrowed during FY23.