Dhaka, April 7 -- The government is set to increase its recurrent expenditure from 8.7% of the Gross Domestic Product (GDP) in the current fiscal year 2023-24 to 9% in 2024-25, with a further rise to 9.5% in 2025-26.

This projection marks a notable increase, according to the Finance Division of the Ministry of Finance. Over the past five years, the recurrent expenditure averaged 7.4% of GDP, highlighting a significant upward trend in government spending.

Recurrent expenditure encompasses salaries for government employees, goods and services purchases, subsidies, transfer payments, and interest on both domestic and foreign loans. The government is keen on optimising these expenditures, particularly the pay and allowances for public servi...