"Instead of borrowing from banking system during the first quarter of this fiscal year, the government has repaid its past debt amounting to Tk 1657.35 crore. Therefore, during the first three months, that is, from July to September of this year, government's borrowing is negative to the tune of Tk 1657,35 crore. In fact, government's borrowing position is not a static figure but a flow that changes over the year," the clarification stated.

It also said the apprehension of overshooting the budgetary target of bank borrowing is unrealistic as the government regularly monitors fiscal deficit. On a different note, it said the government has only prioritised programmes to mitigate the flood-damage within the resource constraints in the budget as funds for post-flood rehabilitation were already provided in the current year's budget.

OUR REPLY
The report was based on information gathered from Bangladesh Bank's "Major Economic Indicator: Monthly Update" for September, which is based on government borrowing from banks in July.