Dhaka, May 6 -- Rising interest payments on government borrowings swallow a huge sum of Tk 712.53 billion during July-December of this fiscal year, in a 22-percent annualised increase.

A latest report prepared by the Finance Division says the increase was driven largely by domestic interest payments, which accounted for nearly 87 per cent of the total interest expenditure during the first of the fiscal.

The government paid a total of Tk 618.66 billion in interest on domestic borrowings while external borrowings cost Tk 93.87 billion, the report shows.

Treasury securities remained the largest component of domestic interest payments, amounting to Tk 378.96 billion, followed by National Savings Certificates (NSCs) at Tk 239.7 billion.

Th...