Govt to spend Rs672b as interest on debts in 2010-11
MABAD The government has estimated an amount of Rs 672 billion for the Interest Expenditure for Domestic as well as External Debts in the coming fiscal year 2010-11, which will be almost four percent higher than the current fiscal year, TheNation learnt on Thursday.
According to the document available with TheNation, the government has estimated Rs 578 billion for the interest expenditure for domestic debt while Rs 93 billion for the external debts for the next financial year.
In the ongoing fiscal year 2009-10 the government had allocated Rs 647 billion for the debt interest expenditure for domestic as well as external debts, which later was enhanced to Rs 664 billion.
The sources informed TheNation that the interest expenditure for domestic debt would be 3.47 percent of the GDP while interest expenditure for external debts would be 0.56 percent of the GDP.
According to the documents, for domestic debt interest government will keep Rs 76 billion for the permanent debt. The break-up of permanent debt shows that government will allocate Rs one billion for Federal Government Bonds, Rs 17 billion for Prize Bonds, Rs 55 billion for Pakistan Investment Bonds and Rs 3 billion for other Bonds (issued to HBL & Ijara Sukuk).
Meanwhile, for floating debt, the government has estimated Rs 243 billion.
In Floating Debt Rs 112 billion will be allocated for Treasury Bills through Auctions, and Rs 131 billion will be kept for Treasury Bills purchased by State Bank of Pakistan.
Similarly, for domestic debt interest, the government will keep Rs 259 billion for unfunded debt. The break-up of the unfunded debt revealed that Rs 120 billion are estimated for Defence Savings Certificates, Rs one billion for Saving Accounts, Rs five billion for Postal Life Insurance, Rs 58 billion for Special Savings Certificates and Accounts, Rs seven billion for Regular Income Scheme, Rs 11 billion for Pensioners Benefit Accounts, Rs 52 billion for Bahbood Savings Certificates and Rs three billion for GP fund.
On the other hand, among the external debt interest, Rs 1.05 billion will be spent on Public and Publicly Guaranteed Debt, Rs 1.03 billion on Medium and Long Term Debt, Rs 0.40 billion on Paris Club, Rs 0.37 billion on Multilateral, Rs 0.11 billion on other bilateral, 0.14 billion on global bonds and Rs 0.01 billion on military debt.