Achi news desk-
In the last 2 months, the government has taken additional loans of 700 billion rupees from banks, after which their volume has reached 47 trillion rupees.
Recent data from the State Bank shows that the government borrowed a record Rs 46.90 billion during July-March.
Due to heavy debt, the private sector took 70% less credit, which will lead to difficulties in economic development.
Despite collecting significant revenue, the record debt reflects heavy government spending, with the government borrowing at record rates, regardless of the cost of borrowing.
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The caretaker government took on a record debt of Rs 39 trillion 90 billion during the period from July 1 to January 19, 2023-24, which is 185% higher than Rs 13 trillion 98 billion in the same period last year.
During fiscal year 2022 and fiscal year 2023, the government took loans of 34 trillion 48 billion rupees and 37 trillion 16 billion rupees from banks respectively.
Some experts believe that given the current borrowing trend, the government could borrow a total of Rs 65 trillion to Rs 70 trillion by June 2024. Debts show that the government’s revenue is insufficient to meet its expenditure.
Reckless borrowing not only increases interest payments, which have reached almost 50 percent of the total budget, but also undermines the Public Sector Development Program (PSDP).
Economic growth remained negative during FY2023, and recent trends suggest that growth may be similar to last year, with the private sector relying on its own resources while domestic capital is also significantly lower.
