Interest payments on government borrowings have emerged as the largest actual expenditure as a percentage of budget spending in the first half of FY2024-25, reaching Tk 625.6 billion.

Between July and December 2024, interest payments accounted for over 55% of the total allocation for the fiscal year ending June 30, 2025. This marks a 27% increase compared to the same period in FY2023-24.

Of the total amount, interest payments on domestic debt stood at Tk 535.38 billion (nearly 58% of the annual allocation), while foreign interest payments amounted to Tk 50.22 billion (covering 44% of the annual estimate).

Other major expenditure categories included salaries and allowances for government employees, operational costs, and subsidies.

Amid rising global prices, the government has allocated substantial subsidies while also clearing outstanding dues, further straining public finances.

Meanwhile, total government revenues—including NBR and non-NBR revenue—rose by less than 1% in the first six months, reaching Tk 1.6289 trillion (about 33% of the budget target).

Non-tax revenue, derived from fees, levies, and penalties, increased by nearly 31% to Tk 324.97 billion.

However, total government expenditure stood at Tk 2.2581 trillion, resulting in a fiscal deficit of Tk 295.27 billion for the period.