One lakh 14 thousand crore rupees shall be spent on curiosity funds within the subsequent monetary 12 months – 2024-05-27 12:04:18

by times news cr

2024-05-27 12:04:18

Each fiscal 12 months, the federal government has to borrow from varied sources to fulfill the funds deficit. Consequently, curiosity expenditure on the federal government has doubled within the final 5 years. Within the monetary 12 months 2019-2020, 57 thousand 663 crore rupees needed to be spent on curiosity funds. Within the subsequent monetary 12 months, the proposed allocation for this sector is 1 lakh 14 thousand crores. This info is understood from sources within the Finance Division of the Ministry of Finance.

Within the funds of the present monetary 12 months, there may be an allocation of Tk 94 thousand 376 crores for the curiosity expenditure sector. However within the revised funds it has been elevated to 1 lakh 5 thousand 300 crore rupees.

On this regard, the finance division mentioned, one other problem within the authorities’s monetary system is the excessive rate of interest in each the home and worldwide markets, which is growing the borrowing price of the federal government. This example shall be more difficult within the medium time period because of the growing demand for infrastructure, social safety methods and different growth targets of the federal government.

In response to the projection of the finance division, within the monetary 12 months 2025-2026, one lakh 38 thousand 30 crore rupees shall be spent solely within the curiosity sector. As the rationale for the rise in curiosity bills, the finance division mentioned, the quantity of inflexible and semi-flexible loans in financing from overseas sources is regularly growing. Consequently, the rate of interest of this sector can also be growing. As well as, devaluation and enhance in international rates of interest will enhance the underlying rate of interest of overseas sources from 1 p.c in FY 2020-2021 to 2 p.c in FY 2025-2026.

On this regard, an official of the finance division mentioned that the home curiosity expenditure has elevated loads as a consequence of authorities securities. Curiosity expense on authorities payments is hovering between 11 p.c and 12 p.c. Which was 6-7 p.c eight months in the past. Consequently, the federal government’s curiosity expense has elevated loads.

In the meantime, it’s seen from the funds doc that the curiosity expenditure within the funds is growing yearly. For instance, within the fiscal 12 months 2021-2022, the curiosity expenditure was 77 thousand 779 crores. Within the monetary 12 months 2022-2023, it elevated to 80 thousand 375 crores. Later it was revised and brought to 90 thousand 13 crores.

Within the revised funds for the monetary 12 months 2020-2021, the expenditure on curiosity sector is 63 thousand 823 crores. Within the unique funds which was 63 thousand 801 crores. Out of this, home curiosity expenditure is Tk 58 thousand 500 crore and overseas curiosity expenditure is Tk 5 thousand 323 crore.

Within the monetary 12 months 2019-2020, the curiosity sector spent 57 thousand 664 crores. Out of this, curiosity expenditure on home sector was 52 thousand 796 crores and curiosity expenditure on overseas loans was 4 thousand 868 crores.

Within the monetary 12 months 2018-2019, curiosity expenditure within the home sector was Tk 45 thousand 278 crore and overseas curiosity expenditure was Tk 3 thousand 467 crore. Within the monetary 12 months 2017-2018, the home curiosity expenditure was Tk 38 thousand 160 crore and the overseas debt curiosity expenditure was Tk 3 thousand 605 crore.

Within the monetary 12 months 2016-2017, this expenditure was 38 thousand 240 crores and 1 thousand 711 crores respectively. In 2015-2016 monetary 12 months 30 thousand 44 crore and 625 crore rupees and in 2014-2015 monetary 12 months home curiosity expenditure was 29 thousand 436 crore rupees and overseas debt curiosity expenditure was 1 thousand 537 crore rupees.

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