Government faces financial challenges with debt servicing surge

In the budget projections for fiscal year 2025, it has been revealed that there will be a significant 18% increase in debt servicing payments compared to the previous year. This means that a larger portion of the government's revenue will be used to cover the interest payments on the outstanding debt, amounting to approximately 55% of the projected revenue of Rs9.8 trillion for fiscal 2025.

This surge in debt servicing payments highlights the financial challenges that the government is currently facing in managing its debt obligations. By allocating such a substantial amount of revenue towards interest payments, it is evident that servicing the government's debt is a top priority for the upcoming fiscal year.

The increase in debt servicing payments for fiscal year 2025 signals a pressing need for the government to address its debt burden effectively. It is crucial for the government to implement sound financial strategies to manage its debt obligations and ensure sustainable economic growth in the long run.