Posted 11/27/2023, 2:00:15 AM
Government Borrowing Soars Amid Fiscal Pressures, Despite Tax Revenue Growth
- Government borrowing from banks has quadrupled compared to last year, putting fiscal sector under pressure despite strong tax revenue growth
- Rising debt servicing costs and government spending amid weak savings is driving high borrowing
- Falling imports have reduced current account deficit, but it may rise again as economy picks up
- Forex reserves still low despite some recovery; sustaining export and remittances growth key
- Hopes pinned on foreign investment inflows in second half of fiscal year, but outcome uncertain