India, Jan. 12 -- The government's outstanding debt in the banking system has surpassed Tk 6 lakh crore for the first time, driven by a sharp increase in borrowing over the past two months despite an initial repayment trend earlier in the fiscal year.

During the first four months of the current fiscal year, the government had in fact repaid Tk 503 crore more to the banking system than it borrowed.

However, this position shifted markedly in November and December as borrowing accelerated.

From the beginning of the fiscal year to 4 January, the government borrowed approximately Tk 60,000 crore from banks, pushing total bank debt to a new record.

To finance the budget deficit, the government sets annual borrowing targets from both the ban...