Home Today's Paper Most Popular Video Gallery Photo Gallery
Subscription Blog Signin Register
Friday, February 7, 2020 11:31:01 PM
Follow Us On: Facebook Twitter Twitter Twitter Twitter

Reckless borrowing by govt indicates coming disaster

  • Twitter
  • Google+
  • Save
  • E-mail
  • Print
Share your thought
Post a comment »
Read all () »

THE government's net borrowing from the bans stood at Tk 49,106.16 crore in the first seven months of the current fiscal year 2019-2020 resulting in a sharp fall in loan disbursement to the private sector. This type of heavy borrowing would not only collapse the banking system but also hamper industrialisation and employment generation. In particular, poor tax collection by the National Board of Revenue and sharp fall in net sales of National Savings Certificates have forced the government to largely dependent on domestic borrowing. Bangladesh Bank data shows, the government's outstanding borrowing stood at Tk 1,57,201.86 crore on January 28 this year from Tk 1,08,095.7 crore on June 30 last year. In the budget for the fiscal year 2019-2020, the government had projected borrowing of Tk 47,364 crore from the banking sector. Another five months of the fiscal year is yet to spare and more than 70 per cent of the Annual Development Programme is still remained unimplemented.
On Thursday the Finance Minister told the Parliament that the government between 2009 and 2019 borrowed Tk 13.28 lakh crore from the banking sector and repaid Tk 11.32 lakh crore that made its net bank borrowing Tk 1,95,783.91 crore at the end of December 2019. As a result, the private sector credit growth dropped to 9.83 per cent in December 2019, the lowest since 2008, after witnessing persistent fall through the year 2019. Even, the sales of NSC, another source of borrowing money for the government, also dropped significantly. Meanwhile, the economy is near to collapse as against the skyrocketing cost of constructing major infrastructures and high salary of public servants the revenue collection is insignificant with a negative growth in private sector.
Finance Minister in his own wisdom found the good economy suddenly fell. All the financial institutions in Bangladesh lost control over looters and racketeers. The government must be seen as being the "biggest defaulter", now it being all-time biggest borrower.  When the government is trying to survive on borrowed money from everywhere, then why blame the loan defaulters if they also want to survive on borrowed money from banks?

Add Rate

News Archive

Inside The New Nation

Editorial »

Money siphoned off by foreigners depriving country

An estimated $3.1 billion, or about Tk 26,400 crore, is siphoned away every year by foreign nationals employed in the country, found a study by the Transparency International Bangladesh. About 1.6 lakh foreign nationals became gainfully employed in Bangladesh after entering the country on a tourist visa, said the report ...

Entertainment »

Priyanka excited about her playback debut

Priyanka Sarkar is super excited to see the overwhelming response her first playback has received. It’s for a television game show and she is enjoying the new challenge to the core while hosting the show as well. The song has been composed by Sayantan Dasgupta and the lyrics are by ...

Cricket »

Archer out of SL tour, IPL with elbow fracture

Jofra Archer has been ruled out of England's upcoming tour of Sri Lanka (SL) as well as the 2020 Indian Premier League (IPL) season, after scans confirmed a low-grade stress fracture of the right elbow.Archer, who had picked the injury in the first Test against South Africa in Centurion, had ...

Football »

Mourinho admits 'best team lost' as Son sends Spurs into FA Cup fifth round

Jose Mourinho admitted Tottenham got lucky after Son Heung-min's late penalty secured a dramatic 3-2 win against Southampton in Wednesday's FA Cup fourth-round replay.Mourinho's side were 12 minutes away from being knocked out after squandering the first-half lead given to them by Jack Stephens' own goal.Shane Long and Danny Ings ...

International »

NASA astronaut Christina Koch is set to return to Earth after 328 days living and working aboard the International Space Station.

International »

Second Palestinian killed by Israeli fire in West Bank

Al Jazeera News :A second Palestinian has been killed by Israeli fire during a demonstration in the occupied West Bank against the demolition of a Palestinian home, Palestinian official media said on Thursday.Yazan Abu Tabikh, 19, was killed and seven others wounded when clashes broke out after Israeli forces raided ...

Football »

Haaland goal not enough as Werder dump out Dortmund

AFP, Berlin :An astonishing eighth goal in four appearances for teenage striking sensation Erling Braut Haaland couldn't help Borussia Dortmund into the German Cup quarter-finals after they were knocked out 3-2 at Werder Bremen on Tuesday.Haaland continued his incredible run of form since signing for the Bundesliga title chasers when ...

International »

Hong Kong airline Cathay Pacific asks all staff to take unpaid leave

AFP :Hong Kong's flagship carrier Cathay Pacific is asking its entire workforce to take up to three weeks of unpaid leave, its CEO announced Wednesday, as the airline faces a crisis in the wake of the new coronavirus outbreak.The request lays bare desperate times at Cathay, which was hammered last ...

International »

Netanyahu-Burhan meeting raises eyebrows, exposes divide in Sudan

Al Jazeera News :Israeli Prime Minister Benjamin Netanyahu was smiling and gesturing as he posed for pictures alongside Yoweri Museveni, the president of Uganda who hosted him in the city of Entebbe on Monday; but it was another meeting, far from the media glare, that made international headlines - and ...

Entertainment »

Disha Patani is a live-wire, makes hottest presence on-screen

Disha Patani is undoubtedly the hottest and the fittest star in the industry. The actress has never failed to wow the audience with her amazing skills and the upcoming movie Malang which is all set to hit the screens later this week, proves that she is totally a live-wire. Every ...

Editorial »

Education Ministry must take proactive role

THE SSC exams began on Monday with some hiccups. Wrong question papers were distributed among students during yesterday's Bangla first part SSC exams at four centres in Barishal, Nilphamari, Jashore, and Feni. These mistakes occurred mistakenly due to the centre teachers not verifying the papers for the regular and irregular ...

City »

BNP Secretary General Mirza Fakhrul Islam Alamgir speaking at a joint committee meeting on post Dhaka City Corporations elections at BNP Chairperson's Gulshan office in the city on Tuesday.

Football »

South Korean court orders compensation for Ronaldo no-show

A South Korean court ordered a local promoter Tuesday to compensate fans for Cristiano Ronaldo's no-show at a friendly match in Seoul last year.The Juventus star stayed on the bench throughout a 3-3 draw with a K-League all-stars team at the Seoul World Cup Stadium in July, despite rounds of ...

Business & Economy »

Ziaul Karim, Head of Communications and External Affairs of Eastern Bank Limited (EBL), receiving the International Finance Awards 2019 in the Most Innovative Retail Bank in Bangladesh category at a ceremony held at Waldorf Astoria Bangkok hotel in Thailand recently.

Entertainment »

Nushrat Bharucha redefines sensuality at Filmfare Awards 2020

The Bollywood actress looked as hot as green chili as she made her appearance at Amazon Filmfare Awards 2020. Nushrat Bharucha looked gorgeous as she slayed the red carpet look in poise. The Dream Girl actress opted for an asymmetrical single sleeve, dark green gown with waist-high slit by Yousef ...

Items that you save may be read at any time on your computer, iPad, iPhone or Android devices.
Are you new to our website? Do you have already an account at our website?
Create An Account Log in here
Email this news to a friend or like someone
Write a comment to this news