One hundred and fifty lakh crore rupees have to be paid as interest on domestic and foreign loans.
In the next financial year, domestic debt interest of 1 lakh 8 thousand crores and foreign debt interest of 20 thousand crores can be allocated.
A large amount of money is being allocated in the budget for the next financial year 2024-25 for interest payments. The government is planning to take huge loans on the assumption that revenue collection is not as expected as well as meeting development expenditure. A large amount of interest has to be calculated against this loan. The increase in interest rates on bank loans and the large devaluation of the rupee against the US dollar are two other reasons for the huge provision for interest payments.
With a deficit of three and a quarter lakh crore rupees, the size of the next budget will be around eight lakh crore rupees. In the budget, there will be an allocation of 1 lakh 28 thousand crore rupees for loan interest payment. Out of this, domestic debt interest is 1 lakh 8 thousand crores and foreign debt interest is 20 thousand crores. This allocation is close to double compared to five years ago.