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The Financial Express

Govt liabilities could climb 56pc in FY'21

| Updated: June 30, 2020 17:38:58


Govt liabilities could climb 56pc in FY'21

The government liabilities are expected to jump by 56 per cent at the end of June 2021, according to the annual financial statement.

The document shows that total liabilities will stand at Tk. 3.36 trillion.

The liabilities consist of domestic debt, foreign loans and other payables.

The liabilities from debt securities will stand at Tk. 2.33 trillion, loans from Bangladesh Bank at Tk. 93 billion and other accounts payable at Tk 22.45 million, according to the document.

Liabilities are the payment for goods and services, which the government contracted out, but made no payment yet. Other payables include bills and bonds issued by government for creating debts from the banking system, interest payment and the repayment of principals.

The liabilities mean that the government has an obligation to settle the amount in the next fiscal year. It is also a constitutional obligation as per the Constitution of Bangladesh.

Finance minister AHM Mustafa Kamal proposed the Tk 5.68 trillion budget for the next fiscal year beginning July 01.

However, the size in the original proposal for budget of 2019-20 was Tk. 2.15 trillion.

But the burden has increased significantly in the revised budget of the current fiscal year at Tk. 2.89 trillion or up by 34 per cent of original estimate.

The document shows that the government borrowing from the central bank has been nil for the current fiscal year.

The government mostly borrows from domestic sources through debt securities and loans from Bangladesh Bank.

The domestic total liabilities will stand at over 2.4 trillion, while foreign debt at Tk over 936 billion at the end of the fiscal year of 2020-21.

jasimharoon@yahoo.com

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