The government expects its interest payments on outstanding debt to roughly double over the next four years as the Bank of Japan’s gradual rate hikes push up borrowing costs.

Interest payments are projected at ¥21.6 trillion ($139 billion) in the year starting April 2029, up from the current year’s budgeted ¥10.5 trillion, according to a Finance Ministry document released Thursday. The projections assume annual nominal economic growth of 3%.

Overall debt-servicing costs are seen rising about 46% to ¥41.3 trillion during the same period. That would account for about 30% of total projected spending of ¥139.7 trillion in fiscal 2029, topping expected outlays for social security.

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