Budget 2023 Govt. depends on saving certificates to meet deficit

Staff Reporter :
The government has tagged various conditions for discouraging the people’s interest in the national saving certificates. From July to April of FY 2021-2022, the actual government loan from national saving certificates have been reduced by about 50 pc. Nevertheless, the government is targeting to increasing the selling of national saving certificates. Basically, the government has set this target to meet the huge budget deficit by selling the national saving certificate.
The government will loan Tk 35,000 crore from the national saving certificates in FY2022-2023 while Tk 32,000 crore were targeted to take loan from saving certificates in FY2021-2022.
According to the Department of National Savings update information from July to April of FY 2021-2022, the government has taken loan from national saving certificates about Tk 18, 000 crore whereas during same time of FY2020-2021, the government has taken loan from saving certificates about Tk 35,000 crore.
The expert said the government has set various conditions to discourage excessive investment in savings certificates. In September last year, interest rates on investments above Tk 15 lakh were reduced. If there is a savings certificate outside the declaration, provision has been made for jail-penalty. Due to these conditions, many people have reduced their investment in savings certificates. Statistics said the government had taken loan from saving certificates Tk 42, 000 crore in FY 2020-2021, Tk 14,000 crore in FY 2019-2020, Tk 49, 000 crore in FY 2018-2019, Tk 47,000 crore in FY 2017-2018 and Tk 52,000 crore in FY 2016-2017.