The country’s apex trade body has called the government to cut its dependency on bank borrowings to offset the deficit in the proposed national budget for FY20.
"Instead of relying on the banking sector, the government should utilize remittances, infrastructure funds, bonds, and other sources to finance its budget deficit," Sheikh Fazle Fahim, who heads the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), told a post-budget media call on Sunday.
In his maiden budget, Finance Minister AHM Mustafa Kamal has proposed an expenditure of Tk 5.23 trillion and set out a revenue target of Tk 3.77 trillion.
The overall budget deficit stands at Tk 1.45 trillion, which stands at 5 percent of the gross domestic product (GDP).
The budget proposes to borrow Tk 473.64 billion from the banking system among other domestic sources to bridge the deficit.
In the budget for FY19, the government had set a Tk 420.29 billion borrowing target from banks.