Updated on
Summary The government is relying more on commercial banks to meet the budget deficit.
The government sold treasury bills worth Rs 3.68 trillion in the fiscal year 2011 to meet the budget deficit.Banks and investors in the money market invested enormously in treasury bills due to its high proportion of profit.The high investment rate in treasury bills took the money market growth rate to 141 percent, exceeding its volume to Rs 70 billion – 32 percent of the total investment in the mutual industry.The industrial growth rate was nominal 0.2 percent in the last two months of last fiscal year due to the high inflation and low saving rates.The perils for local economy are increasing due to the scarcity of investment.
