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Interest payments: The biggest silent drain on the Budget

Last Updated: Jan 27 2026 | 11:48 AM IST

In Budget 2026, Finance Minister Nirmala Sitharaman faces an uphill task as interest payments now take up nearly one-fourth of the Union Budget and more than one-third of government revenue. This video breaks down what interest payments are, why they keep rising, and how they quietly limit spending on infrastructure, welfare and growth. Using Budget numbers and simple explanations, we show why this overlooked line item matters for the 2026 Budget and India’s fiscal choices.

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