The government took an additional public borrowing worth Rs 22.97 billion last month amid slow revenue collection and high recurrent expenditure.
According to the Public Debt Management Office (PDMO), out of the total amount received during mid-January and mid-February, Rs 22 billion was domestic borrowing and the remaining Rs 970.60 million was external loans. During the review period, the government spent Rs 38.66 billion to pay back the loans and interest amount for the public debt.
With an added financial liability, the government’s borrowings have reached Rs 2.386 trillion. In the first seven months of the current fiscal year, the government received an additional Rs 202.43 billion in public borrowings.
Meanwhile, the government spent Rs 155.24 billion to pay principal and interests on the public debt during mid-July and mid-February. This included payment of Rs 130.11 billion on domestic borrowings and the remaining Rs 25.13 billion on foreign loans.
Citing the need to meet the expanding fiscal deficit, the government had estimated to take public debt of Rs 400 billion in the current fiscal year. Along with reducing the budget size from Rs 1.751 trillion to Rs 1.530 trillion through the mid-term budget review, the government has also reduced the targeted expenses under financial management to Rs 307.45 billion.
The government has also revised the revenue collection target to Rs 1.309 trillion from Rs 1.422 trillion. The expected amount in foreign grants has also been reduced to Rs 40.12 billion from Rs 49.94 billion. The projected foreign loans have been revised from Rs 212.75 billion to Rs 180.83 billion.
