Interest payments on government borrowings in the last fiscal year (2022-23) exceeded the allocation by Tk 35.69 billion, reaching a staggering Tk 839.44 billion. This surpasses the original allocation of Tk 403.75 billion in the budget for fiscal year 2022-23.
The debt-service liabilities have grown due to higher government borrowing from both internal and external lenders. In the previous fiscal year, the government repaid Tk 777.79 billion in interest against loans, exceeding the revised budget allocation of Tk 712.44 billion. The government’s deficit financing involved substantial borrowing from domestic resources, leading to a net government borrowing of Tk 1.18 trillion from the banking system. This financial trajectory, marked by increased borrowing, poses challenges for the economy and contributes to inflationary pressures.
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