Public debt increases by around Rs 84bn in first 4 months of current FY

KATHMANDU: Approximately Rs 84 billion in public debt has been added in the first four months of the current fiscal year 2024/25.

According to the Public Debt Management Office, Nepal's total public debt has exceeded 44% of the Gross Domestic Product (GDP).

At the beginning of the current fiscal year, public debt stood at Rs 2,434.09 billion and increased by Rs 83.95 billion by mid-November, reaching Rs 2,518.05 billion. This accounts for 44.94% of GDP. The Office reports that of the total public debt, internal debt amounts to over Rs 1,252.16 billion, while external debt exceeds Rs 1,265.89 billion.

Based on GDP, internal debt constitutes 21.95%, while external debt makes up 22.19%.

The government aims to mobilise Rs 547 billion in public loans during the current fiscal year. So far, Rs 165.72 billion has been raised, representing 30.30% of the annual target.

The government had set a target to raise Rs 330 billion in public loans this fiscal year, achieving Rs 144 billion, or 43.64% of the annual target, within the first quarter.

Additionally, the government aimed to mobilise Rs 217 billion in external loans by mid-November but has raised only Rs 21.72 billion, or 10.1% of the target, so far.

The government allocated Rs 402 billion to reimburse the principal and interest of public loans this fiscal year. According to the Office, Rs 108.14 billion has been paid by 15 November, accounting for 1.90% of GDP.