Budget deficit for outgoing FY soared to 5% of GDP
Budget deficit for the outgoing year soared to 5 percent of GDP, up from 4.76 in fiscal 2016-17.
Less revenue income and higher expenditure has increased the deficit, according to the budget proposal for 2018-19.
Finance Minister AMA Muhith proposed the budget deficit in the fiscal 2018-19 at Tk 1,25,293 which is 4.9 percent of the GDP.
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Of the deficit, Tk 54,067 crore will come from external sources while domestic sources will provide Tk 71,226 crore.
Of the domestic source Tk 42,029 crore will be borrowed from the banking system while Tk 29,197 crore from National Savings Schemes and other non-bank sources.
The minister hoped that if the country could use the huge external resources in the pipeline, then the dependence on domestic sources could be reduced.
"We shall, therefore, persistently make efforts to scale up the use of foreign assistance," the minister said.
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