What is Credit Situation of Monetary Policy

The target of credit in private sector in the current MPS (Monetary Policy Statement) has been set at 15.5 percent by December 2013. This target is 3.0 percentage points less than the target (18.5 percent) of previous monetary policy statement. The target of MTMF in domestic credit and credit in private sectors were based on contractionary mode.

Development and Non-Development Expenditure

Of the total public expenditure, target of Tk. 222,491 crore (18.7 percent of GDP) for FY 2013-14, the allocated amount for non-development and other expenditure is Tk. 156,621 crore (13.2 percent of GDP) and ADP expenditure is Tk. 65,870 crore (5.5 percent of GDP). In the previous fiscal year (FY 2012-13), ADP expenditure was Tk. 52,068 crore

Debt Burden

Per capita debt burden, which is the sum of per capita domestic debt as well as per capita external debt, has been increasing over the years. Specially, since FY 2006-07 per capita debt burdens have been showing a sharp increasing trend. In FY 2012-13 and FY 2011-12, per capita debt burden has increased by Tk. 407.65 and Tk. 656.20 respectively. In FY 2012-13, per capita

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