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MP Mohul Urges The Govt To Reduce The Trend Of Borrowing From Banking Sources

National Parliament; (On Inset) MP Nasser Shahrear Zahedee Mohul, Independent Member Of Parliament Of Jhenaidah-2 Constituency. File Image

National Parliament; (On Inset) MP Nasser Shahrear Zahedee Mohul, Independent Member Of Parliament Of Jhenaidah-2 Constituency. File Image

Member of Parliament of Jhenaidah-2 Constituency Nasser Shahrear Zahedee has expressed his deep concern regarding the loans received by the government from banking sources. He said that the government has set a target of taking a loan of Tk 1 lakh 37 thousand crore from banking sources in the next fiscal year 2024-25. If this loan is taken, the debt status of the government from this source will exceed 6 lakh crore taka. If the government borrows at a large scale, the flow of credit to the private sector will decrease and which will disrupt investment as well as will affect over the industry and commerce sectors also.

He said these while participating in the Parliament in the 2023-24 fiscal year supplementary budget discussion. 

Nasser Shahrear Zahedee said, "If the government takes more loans from banking sources, the flow of loans to the private sector will be decreased. If the flow of credit to the private sector decreases, the investment will be disrupted.’’

He mentioned that in 2017-18, the government's debt from banking sources was only 11 thousand 731 crores. In the following year it was at 34 thousand 587 crores. But just before Covid, the government had to take a loan of 72 thousand 246 crores from banks in the financial year 2019-20. In consequences the government took a loan of Tk 1 lakh 24 thousand 123 crore from banking sources in the post-Covid fiscal year 2022-23. In the main budget of the current financial year 2023-24, the target of borrowing from banks was 1 lakh 32 thousand 395 crores. But in the revised budget it has been fixed at 1 lakh 55 thousand 935 crores. Whereas only in the month of June-2024, the government has to borrow 61 thousand crores from the banking sector.

He expressed his apprehension regarding the issue and said that till now the government's loan status from the bank is about 4 lakh 40 thousand crores. If this rate continues the bank loan status will stand at around 6 lakh crore taka in the next financial year 2024-25. I think we need to be conscious over the matter. Government borrowing from banking sources should decrease and the flow of credit to the private sector should increase. I am drawing my attention to the Finance Minister in this regard.

Nasser Shahrear Zahedee said, if private investment is interrupted, the progress of industry and service sector will be interrupted. And this will reduce the country's employment opportunities with creating more unemployment. If we can't create new jobs, we will fail to fulfill the youth’s dream. And if the youth community fail to fulfill their dreams, our future will be dark. Therefore, the government should increase the opportunity to take loans from banks to the private sector. To increase it, the government's tendency to borrow from banking sources should also be reduced.

Emphasizing on further expansion of income tax collection, Zahedee said, 'During the British period, land-based rent was the main component of revenue collection. But now a days the amount of rent coming from the land is comparatively very less. But now the Tahsil office has been extended up to the union level for collection of rent. Still now a bulk quantity of revenue is being collected through NBR. However, there are not many officials in this department at the district levels. I think the network of NBR needs to be expanded from district levels to upazila levels.’

Regarding the equality of allocation of funds in the budget, Nasser Shahrear Zahedee said, "The government finance budget management law which was made in 2009, it is said to ensure the equality of allocation and receipt of funds." It has been said in the budget law that there should be equal progress and development throughout the country. But in my remote district of Jhenaidah still remains as highly remote district. 

He said, am saddened to say that my Jhenaidah district does not have a university, a medical college, an economic zone and a specialist hospital. Bangladesh is progressing today, but it seems that my Jhenaidah district is not progressing. 

At this time he drew the attention of the Finance Minister to ensure fairness in the allocation of funds in the next budget.

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