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| Finance Ministry Reports 48% of Government Earnings Consumed by Debt Servicing. |
"High Interest Rates Cause 48% of Government Earnings to go towards Debt Servicing in Q1 2023-24"
"In the first quarter of the fiscal year 2023-24, the Finance Ministry reveals that 48% of government earnings are used for debt servicing, primarily due to elevated interest rates.
The ministry's early Fiscal Operation Report, prompted by an IMF Review Meeting, discloses that the government allocated Rs. 7,304 billion for servicing internal and external debts, including Rs. 6,430 billion for internal public loans.
Despite a policy rate increase of 6%, the government faces mounting pressure due to heavy borrowing and rising debt servicing costs."
