National savings certificate sales increased 2.96 per cent or Tk 514.08 crore in July-October of 2018-2019 fiscal year in comparison with that of in the same period of the previous year due to higher returns from NSCs than bank deposits.
As per the latest Directorate of National Savings report, the net sales of NSCs increased to Tk 17,828.73 crore in July-October of FY19 against Tk 17,314.65 crore in the same period of FY18.
The net sales of NSCs, however, posted fall in October this year by 4.40 per cent or Tk 203.62 crore against that of in the same month of last fiscal year mainly due to the finance minister’s latest stance to streamline sales of NSC sales from January 2019 amid its high growth and debt liability getting heavy for the budget management.
In October, net sales of government’s savings certificates declined to Tk 4,416.71 crore against sales of Tk 4,620.33 crore in the same month last year.
A joint meeting of the national coordination council on the budget and macro-economy at the finance ministry held on November 27 discussed that the government might seek source of fund from the NSC buyers with a view to discourage borrowing of such costly fund.
After the meeting, finance minister AMA Muhith informed reporter that the sales of saving certificates would be streamlined from January.
He, however, did not say what measures would be taken to regulate saving certificates sales. With eight month of the FY19, the government has already sold 68.05 per cent NSCs out of its annual target of Tk 26,197 crore for the current fiscal.
Earlier, the government had announced that it would not cut interest rates on NSCs before the national elections likely to be held by the end of December this year.
‘Whatever changes may come in the interest rate of savings certificates it will come into force after the next general elections,’ said finance minister AMA Muhith in August
The rates offered by the NSCs are between 11.04 per cent and 11.76 per cent.
The government’s net borrowing from the savings certificates was Tk 46,530.30 crore in the fiscal year of 2017-2018 against its revised target of Tk 44,000 crore for the fiscal year. The initial target for FY18 was Tk 30,150 crore.
Want stories like this in your inbox?
Sign up to exclusive daily email
More Stories from Miscellany