Government borrowing from banks up by 41 percent

The government''s budgetary borrowing surged by 41 percent during first 26 days of current fiscal year, which reflects that the federal government is still relying on the State Bank and other banks for budgetary support despite State Bank''s request to reduce borrowing.
SBP statistics have depicted that during first 26 days of 2008-09 government sector borrowing for budgetary support had gone up to Rs 58.239 billion from July 1 to 26 2008 against Rs 41.317 billion of July 1 to 28, 2007, a raise of Rs 16.922 billion, or 41 percent.
The statistics also depicting that major rise was in the borrowing from SBP, which reached Rs 30.067 billion while previously, during the same period of 2007-08 it stood at the negative position of Rs 4.073 billion. However, borrowing from other banks showed sharp decline, of 38 percent. The Government borrowed Rs 28.172 billion from banks as compared to Rs 45.390 billion of last fiscal year, registering a decreased of Rs 17.218 billion.