In the first half of the 2024-25 fiscal year, the Bangladesh government spent Tk 62,560 crore on interest payments for domestic and foreign debts—marking a 27% increase from the same period last year. Of this, Tk 53,538 crore was used for domestic debt and Tk 9,022 crore for foreign debt. Interest payments have now risen to over 34% of the government’s operating expenses, compared to under 30% previously. Experts blame the growing burden on poor fiscal planning by the former government, particularly in taking politically motivated loans for inefficient megaprojects. While development spending declined, the overall budget implementation rate slightly rose to 28.33%, driven mainly by higher interest payments. If current trends continue, total interest payments may reach Tk 125,000 crore—exceeding the Tk 113,500 crore allocated. The Annual Development Programme (ADP) saw a low implementation rate of 14.75%, down from 15% the previous year, amid warnings that low revenue collection could worsen the debt pressure.
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