Govt debt goes up by 11.5pc to Rs39.7tr

249
Govt debt goes up by 11.5pc to Rs39.7tr
Govt debt goes up by 11.5pc to Rs39.7tr
Advertisement

From August 2020 to August this year, the federal government’s overall debt grew by 11.5%, while the external debt (in rupees) increased by 8% in the first two months of 2021-22.

According to the State Bank of Pakistan’s latest report on the government’s overall debts, external debts grew by Rs1.3 trillion in a year, owing mostly to the strengthening of the US dollar versus the local currency.

However, the central government’s domestic debt grew by Rs70 billion in July-August. Domestic debts increased to Rs26.335 trillion in August, up from Rs26.265 trillion in June.

As debt levels rise, debt payment costs rise, consuming the majority of tax revenue and reducing development funding. Every year, the government borrows additional money to pay down debts and close the fiscal deficit (the difference between spending and revenue).

According to the SBP data, the federal government’s overall debts fell for the first time in ten months in August, falling by Rs99 billion, or 0.2 percent, to Rs39.771 trillion from Rs39.870 trillion in July.

LEAVE A REPLY

Please enter your comment!
Please enter your name here