Fiscal year 2024 is shaping up to be another arduous chapter in the government’s fiscal management journey. Despite improvements in revenue collection and the resurgence of external debt inflows in June and July, the government’s reliance on domestic debt is expected to persist. This reliance, however, comes with a significant burden of high interest payments and substantial foreign debt repayments. Over the next three months (August-October 2023), the government has set its sights on borrowing a staggering Rs11.09 trillion from domestic commercial banks. Initial expectations from government authorities and financial experts indicated that the government’s reliance on domestic borrowing would diminish once external inflows resumed.
