Monthly Report On Government Borrowing from Domestic Sources July FY17 1 Research Department Bangladesh Bank 1 The report has been prepared by Money and Banking Division, Research Department, Bangladesh Bank (the Central Bank of Bangladesh) Comments are welcome on any aspect of the report and can be sent to Mohammed Abdul Halim, Deputy General Manager, Research Department, Bangladesh Bank E-mail: mohammadabdul@bborgbd Page 1 of 3
Government Borrowing from Domestic Sources, July 16 Government borrows from both domestic and external sources to bridge its fiscal deficits Government domestic borrowing sources are banks (Bangladesh Bank and Scheduled Banks) and other than banks Government borrows from banking system mainly through Treasury Bills and Bonds and from non-banking sources through National Savings Directorate (NSD) in addition to Treasury Bills and Bonds It is observed that the government borrowed Tk21473 crore (net) through Bonds and Tk73477 crore through Treasury Bills during July 16 In addition to that, government borrowed Tk34984 crore through NSD instruments during the month Net government domestic borrowing stood at Tk57516 crore during July 16 after the adjustments with Treasury Bills and Bonds, NSD, Ways and Means Advances (WMA), advances to Food and other Ministries, Overdraft current and block accounts, accrued interest, and advances and deposits of autonomous and semi-autonomous bodies as well as the deduction of in the form of government deposits with Bangladesh Bank and scheduled banks (ie including banking and nonbanking sources) During the month, government deposits decreased by Tk3379 crore (net) where deposits with scheduled banks decreased by Tk5337 crore and deposits with Bangladesh Bank increased by Tk46958 crore Instrument-wise net government domestic borrowing during July 16 is depicted in chart-1 Ways and Means Adv Overdraft Overdraft Block Govt Currency Liabilities Treasury Bills Treasury Bonds Special T Bonds Balances of GIIB Fund NSD Instruments Adv to Food Ministry Adv to Other Min,Auto&Semi-Auto Accrued Interest Govt Deposits (-) Other securities Chart-1: Instrument-wise Net Government Domestic Borrowing during July of FY 17-4 -4316-27 -176-152 -13 3377 2923 3379 215 34984 73477-6, -2, 2, Taka in Crore 6, 1, The movements in net government borrowing from different domestic sources during July-June of FY16 as well as July 16 Chart-2: Movements in Government Domestic are demonstrated in chart-2 Borrowing during July of FY 17 In July, 215 government Taka in crore 5, 4, 3, 2, 1, -1, -2, July'15 Jul-Aug Jul-Sept Jul-Oct Jul-Nov Jul-Dec Jul-Jan Jul-Feb Jul-Mar Jul-Apr Jul-May BB SBs Non-Bank Total Jul-June July'16 borrowed Tk99142 crore from Bangladesh Bank On the other hand, government borrowing from Bangladesh Bank decreased by Tk13627 crore in July, 216 from the net outstanding domestic borrowing as on June, 216 Page 2 of 3
Taka in crore 2, 15, 1, 5, -5, -1, -15, Jul-15 Chart-3: Monthly Trends in Government Domestic Borrowing during July of FY 17 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Monthly movement of government's net domestic borrowing is represented in chart-3 From the chart it is seen that from April, 216 to June, 216 monthly trend of government (net) domestic borrowing is increasing However, during the month of July, 216 government domestic borrowing BB SBs Non-Bank Total stood at Tk57516 crore (net) which is Tk14212 crore lower than the previous month In the budget of FY17, Tk61548 crore has been fixed for borrowing from domestic sources by the government of which Tk38938 crore and Tk2261 crore have been targeted to borrow from banking and non-banking sources respectively During the month of July 16, the total govt borrowings from the banking system stood at Tk22311 crore The government borrowed (net) Tk 9495 crore through T-Bills and T-Bonds which covered 154 percent of the total budget target from domestic sources Government borrowed Tk3525 crore from other than banks (including NSD, T-Bills and Bonds), which covered 156 percent of the total budget target from non-banking sources Government borrowed Tk34984 crore through NSD instruments during the month of July 16 against the target of Tk1961 crore of FY17 The total net government domestic borrowing (banking and non-banking sources) stood at Tk57516 crore after the adjustment with government deposits and other items during July 16 A comparative picture of government total budget target and actual domestic borrowing during July 16 is produced in chart-4 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Chart-4- : Budget Target and Net Government Domestic Borrowing during July of FY17 Bangladesh Bank -136276 Scheduled Banks 158587 Actual (Banking System) Target (Banking System) Actual (Non-Bank) 22311 3525 38938 Target (Non-bank) 2261 Actual (Total) Target (Total)) 57516 61548-24, -16, -8, 8, 16, 24, 32, 4, 48, 56, 64, Taka in Crore Page 3 of 3
Table I : Government Borrowing Position from the Banking System, July FY17 Annex-1 (Provisional) (Taka in crore) Sl Outstanding as Particulars Issue and Maturity Outstanding as on No Objectives on Change (+) / (-) date 3 June 16 31 July 16 July 16 1 2 3 4 5 6 7=(6-5) A Bangladesh Bank 1 Ways and Means Advances 4-4 2 Overdraft 4316-4316 3 Overdraft Block 7185 7185 4 Devolvement 46786 59663 12877 a) Treasury Bills 15629 22757 7128 b) Treasury Bonds 31157 3696 575 5 Government Currency Liabilities 2263 2263 6 Advances to Autonomous and Semi-autonomous Bodies 7 Accured Interest 739 678-61 8 Government Deposits @/ (-) -471-47429 -46958 9 BB's Balances of GIIB Fund (-) -8593-17721 -21818 A Total : (1 ++ 9)* 13358-2696 -136276 B Deposit Money Banks (DMBs) 1 Government Treasury Bills 24611 3711 66499 i) Treasury Bills (Less than 1 year) 24611 3711 66499 2 Bangladesh Govt Treasury Bonds (BGTB) 18295 123676 1538 i) 2-years Bangladesh GovtTreasury Bonds To increase long-term 85215 85716 51 ii) 5-years Bangladesh GovtTreasury Bonds investment of different 263366 26928 5662 iii) 1-years Bangladesh GovtTreasury Bonds banks, non-bank financial 38596 394185 8225 iv) 15-years Bangladesh GovtTreasury Bonds institutions and 15365 15485 435 v) 2-years Bangladesh GovtTreasury Bonds employees GF of 1215 12662 557 3 Others Treasury Bonds 138877 13885-27 a) 5 Years and above (Specialized Bonds) 138877 13885-27 Issued 16 Jan-211 and 6, 7 &1-years (BJMC&BTMC) interest free maturity date 16 January To repay the loan of i) Treasury Bond-216, 217 &22 217, 18 & 21 BJMC & BTMC 6779 6779 respectively Issued 1 Nov-1993 and To compensate for the 25-years (Jute)Treasury Bond-218 bearing 5 ii) percent interest maturity date 1Nov- liquidation of jute sector 218 credit 532 532 25-years (Jute) Treasury Bond-219 bearing Issued 3 Jun-1994 and To compensate for the iii) 5 percent interest 4/ maturity date 3 Jun- liquidation of jute sector 219 credit 369 369 To reimburse one-third 25-years (Jute) Treasury Bond-22 bearing Issued 1 Jul-1995 and of the debt due to jute iv) 5 percent interest 1/ 2/ maturity date 1Jul-22 mills' loan write-off by the private banks 116 89-27 1-years to 15-years (BPC) Treasury Bond v) bearing 5 percent interest 5-years and 6-years (BPC) Treasury Bond vi) bearing 7 percent interest 5-years to 13-years BJMC Treasury Bond vii) bearing 5 percent interest viii) 7-years SPTB-22 bearing 7 percent interest Issued 25 Sep-27 and Maturity date from 25 Sep-214 to 25 Sep- 222 Issued 5 Oct 211 and 26 Dec 211 and Maturity date 5 Oct- 216 and 26 Dec-217 To repay the loan of Bangladesh Petroleum Corporation To repay the loan of Bangladesh Petroleum Corporation Issued 23 Oct-211 and maturity date 23October To repay the loan of 216, 2, 22 & 24 BJMC respectively Issued 29 June-213 and maturity date 29 June- 22 Issued 29 June-213 and ix) 8-years SPTB-221 bearing 7 percent interest maturity date 29 June- 221 Issued 29 June-213 and 1-years SPTB-223 bearing 7 percent x) maturity date 29 Juneinterest 223 29225 29225 21 21 2154 2154 2 2 2 2 19351 19351 4 Sub-Total : (1+2+3) 1387784 1469635 81852 5 Prize Bond/Income Tax Bond 35 98-27 6 Government's other Securities 28 132 14 7 Advances to Food Ministry 5494 8871 3377 8 Advances to Other Ministries 14538 14211-327 9 Advances to Auto/Semi-Autonomous Bodies 1984 1799-1175 1 Accrued Interest 2987 3271 2984 11 Deposits of Ministries and Departments (-) -21855-189771 28284 12 Deposits of Auto/Semi-Autonomous Bodies (-) -34691-318638 2253 13 SBs's Balances of GIIB Fund (i+ii) 84145 15787 21642 i) Investment to GIIB Fund 121891 128783 6892 ii) Borrowing from GIIB Fund (-) -37746-22996 1475 B Total : (4+ +13) 981719 11435 158587 Grand Total : (A+B)* 1115298 113769 22311 Notes: @/ Including other deposits 1/ 2 year Bangladesh Government Treasury Bond was introduced in May 213 2/ An amount of Tk 27 crore was paid in July 216 against the outstanding of Tk 116 crore in June 216 3/ *Including GIIB Fund 4/ An amount of Tk 164 crore was paid in June 216 against the outstanding of Tk 533 crore in June 215 Source: Debt Management Department, Statistics Department, Bangaldesh Bank ( Figures of Treasury Bills and Bonds (Including Special Bonds) are collected from DMD)
Table-II: Government Borrowing (Net) from Other than Banks, July FY17 (Taka in Crore) July 215 July 216 Sl Particulars Sale Repayment Net Sale Repayment Net No Principal Interest Sale Principal Interest Sale 1 2 3 4 5 6 = (3-4) 7 8 9 1 = (7-8) NSD Instruments 1 Defence Savings Certificate 6 8-6 1 1-1 2 5-year Bangladesh Savings Certificate 3952 245 1259 1547 4854 1216 462 3639 3 3-year Savings Certificate 4 Bonus Savings Certificate 5 6-month interest bearing Savings Certificate 6 Family Savings Certificate 1475 1584 3217 8891 17346 4449 4231 12898 7 3-month interest bearing Savings Certificate 8492 3981 1594 4511 1366 459 293 97 8 Jamanat Savings Certificate 9 Pensioner Savings Certificate 2563 1238 544 1325 49 115 688 2994 1 Post Office Savings Bank 68 3179 96 283 8326 327 859 556 a) General Account 1271 851 3 42 1583 979 21 64 b) Fixed Account 4737 2328 876 241 6744 2292 837 4452 c) Bonus Account 11 Postal Life Insurance 6 79-19 58 57 14 1 12 Prize Bond 18 7 18 39 1 14 38 13 Wage Earners' Development Bond 485 73 225 412 1232 24 172 128 14 3-year National Investment Bond 1-1 2-2 15 US $ Premium Bond 13 17 13 41 2 41 16 US $ Investment Bond 299 56 6 243 348 244 72 15 17 Total : (1++15) 32364 1261 7782 19763 49321 14337 866 34984 Outstandings as on Net Outstandings as on Net July 215 Changes July 216 Changes 18 Govt Treasury Bills/Bonds 232587-3173 241156 221 i) Government Treasury Bills 8492-356 2974-149 ii) Bangladesh Govt Treasury Bonds (BGTBs) 22496-2817 238182 37 a) 2-year Bangladesh Government Treasury Bonds 6363-2293 4786 99 b) 5-year Bangladesh Government Treasury Bonds 5981 387 59889-17 c) 1-year Bangladesh Government Treasury Bonds 8487-329 98962 74 d) 15-year Bangladesh Government Treasury Bonds 29354 796 3921 295 e) 2-year Bangladesh Government Treasury Bonds 44428 1583 43624 243 19 Total Non-bank Government Borrowing (net) : (17+18) 16589 3525 Sources : National Savings Directorate, Debt Management Department, BB