Sources of Borrowing and their Implications

Total public borrowing has been increasing since FY 2009-10, and the government has set its target to borrow at Tk. 48362 crore in the budget for FY 2013-14. This is equal to an increment by Tk. 3986 crore than the amount borrowed in the previous fiscal year. This increasing public borrowing indicates that revenue collection is not increasing

Pressure on Revenue Collection

The government has been struggling to boost up its revenue earning. Total revenue is collected either from tax or from non-tax sources. In total revenue, tax revenue consisted of 80.9 to 83.42 percent between FY 2007-08 and FY 2012-13 and the remaining came from non-tax sources. Of the total tax revenue, nearly 95-96 percent is collected by the NBR. Several issues have gained importance in recent