Public debt increases to NPR 2.518 trillion

KATHMANDU, NOVEMBER 21: The public debt has increased by nearly NPR 84 billion in the first four months of the current fiscal year 2024/25, according to the Public Debt Management Office. Nepal's total public debt now exceeds 44% of its Gross Domestic Product (GDP).

The office reported that total public debt stood at NPR 2.434 trillion at the beginning of the fiscal year. By the end of Kartik (mid-October to mid-November), it had risen by NPR 83.95 billion to reach NPR 2.518 trillion, accounting for 44.14% of the GDP.

The report also highlighted a decrease of approximately NPR 980 million in public debt between Ashoj (mid-September to mid-October) and Kartik, attributed to changes in foreign exchange rates. As of Kartik, internal debt amounts to NPR 1.252 trillion, representing 21.95% of the GDP, while external debt stands at NPR 1.265 trillion, accounting for 22.19% of the GDP.

The government has set a target to mobilize NPR 547 billion in public debt for the current fiscal. By the end of the first quarter, NPR 165.72 billion had been mobilized, achieving 30.30% of the annual target. Of this, NPR 144 billion in internal debt, or 43.64% of the annual target, was raised during the period. Similarly, NPR 21.72 billion in external debt, or 10.10% of the target, was borrowed.

For debt repayment, the government allocated NPR 402 billion in the current fiscal year to cover both principal and interest. By Kartik’s end, NPR 108.14 billion had already been paid, equivalent to 1.90% of the GDP.

The report underscores the rising burden of public debt while detailing the government’s progress in borrowing and repayment activities.

 

 

 

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