The proposed budget has a deficit of Tk214,681 crore that the government is planning to meet by further inflating interest payments.
In the proposed budget for the upcoming 2021-22 fiscal year, expenditure based on interest payments has been fixed at Tk68,589 crore - 11.36% of the total expenditure in the budget.
The amount for paying interest on public debt in the FY2021-22 budget has been set Tk4,766 crore higher than the revised budget of the outgoing fiscal year.
The revised target for interest payments in the 2020-21 fiscal year was set at Tk63,823 crore.
The allocation for interest payments in the proposed budget is almost double the amount earmarked for the same purpose five years ago.
Expenditure on interest payments in FY2016-17 was Tk35,691 crore.