Dhaka, May 16 -- Significant rises in domestic and overseas borrowings make the government earmark some Tk 1.22 trillion for hefty interest payments in the upcoming budget, and officials see no letup in liability increases in the near future.

Experts see high debt stock, interest-rate rise and depreciation of the local currency behind the rise in debt-service costs.

The estimated budgetary allocation for interest payments accounts for an increase by Tk 85 billion or 7.5 per cent compared to the allocation in the outgoing budget, they said.

In the current budget the allocation for interest payments is Tk 1.135 trillion of which Tk 930 billion is for domestic debt servicing while Tk 205 billion for servicing foreign loans.

Officials hav...