Government Borrowing Experiences Drastic Increase Within A Week
The State Bank reported on Monday that the government’s borrowing from the scheduled banks has jumped drastically by 99 percent within a week.
Reportedly, the government’s borrowing increased from Rs443.5 bn to Rs899bn from September 6 to September 13. This jump is reportedly equal to the amount – Rs455.8bn – it borrowed between July 1 and Sept 6.
The State Bank has reported that the government engaged in aggressive borrowing aggressively during the week and added about Rs443.5bn to its debts.
The aggressive borrowing began in mid-July following the State Bank completing its cycle of monetary tightening and raising the key discount rate by one percentage point.
The government has so far retired Rs625bn of the State Bank. During the same period of the last fiscal year, the government retired Rs1,238bn of the scheduled banks.
The private sector retired Rs115.7bn till Sept 13 which was Rs86bn till Sept 6. However, the private sector had last year borrowed Rs16.5bn during the same period.