The government’s borrowing from the banking sector was 8.48 percent less than the target of Tk 6,531 crore in fiscal year 2006-07 due to low expenditure in ADP (annual development programme) and $100 million credit support from the World Bank for education sector. The government borrowed Tk 5,977 crore from different banks against the revised target last fiscal year.

Of the total borrowing, Tk 4,547 crore was from different commercial banks and Tk 1,429 crore from the Bangladesh Bank. In FY 2005-06, the government’s total bank borrowing was Tk 5,667 crore. Planning ministry sources said Tk 21,600 crore was allocated for the ADP in the revised budget of the last fiscal year, but the total expenditure did not exceed Tk 18,000 crore.

In FY 2005-06, the ADP expenditure was Tk 19,473 crore against the allocation of Tk 21,500. The government spent only Tk 11,447 crore of the ADP in the first 10 months of FY 2006-07, which was Tk 12,023 crore in same period of the FY 2005-06.

The sources said the total ADP expenditure in the last fiscal year did not exceed the allocation as the last few months witnessed political turmoil, hampering the development expenditure. The government received $100 million credit support from the World Bank for education sector in June this year. The sources said despite failure of targeted revised revenue collection in the last fiscal year, the government borrowing did not increase due to credit support of the World Bank.