Big spike in govt’s interest payment

Finance minister AMA Muhith
Finance Minister AMA Muhith. Star file photo

The government will have to spend Tk 51,340 crore for interest payment in the upcoming fiscal year which is 11 percent of total proposed budget of Tk 4,64,573 crore.

The interest expenditure is 24 percent higher from Tk 41,459 crore estimated for current fiscal year, according to Finance Minister AMA Muhith'snew budget proposed today.

The high interest rate of savings instruments, seemingly to gain popularity in the election year,has pushed up the government's budget expenditure. Most of the interest payments will meet the government's domestic borrowing costs.

According to a Bangladesh Bank report, government borrowing from savings instrument is increasing significantly as it carries relatively higher interest rate compared to other savings rates.

The rate of interest on savings certificates is about 12 percent whereas deposits in the banking sector offer 6 to 7 percent interest.


Law minister

নির্বাচনের আগে হয়রানিমূলক মামলা না করার সিদ্ধান্ত: আইনমন্ত্রী

নির্বাচনকে স্বচ্ছ, নিরপেক্ষ, সুষ্ঠু, অবাধ ও শান্তিপূর্ণভাবে অনুষ্ঠানে নির্বাচন কমিশন চ্যালেঞ্জ হিসেবে গ্রহণ করেছে এবং এসব চ্যালেঞ্জসমূহ উত্তরণের জন্য ১১ দফা সিদ্ধান্ত নেওয়া হয়েছে।