Nepal's Public Debt Reaches 47.13% of GDP by End of Falgun, Data Shows

Kathmandu. The share of total public debt in the Gross Domestic Product (GDP) has reached 47.13 percent. This increase in the debt-to-GDP ratio occurred as the government borrowed a total of NPR 2.878 trillion by the end of Falgun of the current fiscal year.

According to the Public Debt Management Office, the total public debt liability increased from NPR 2.674 trillion at the beginning of the current fiscal year to NPR 2.878 trillion by the end of Falgun, which accounts for 47.13 percent of the GDP.

As of the end of Falgun, foreign debt constitutes 53.16 percent of the total public debt, while domestic debt accounts for 46.84 percent. The office reported that the government borrowed NPR 204.24 billion in public debt within the first eight months of the current fiscal year.

• Amount Mobilized?

Against the target of mobilizing a total of NPR 595 billion in public debt during the current fiscal year, NPR 295.19 billion has been received by the end of Falgun. This represents 50.44 percent of the annual target. Among these receipts, the progress for domestic and external debt mobilization stands at 67.31 percent and 24.31 percent, respectively.

For the fiscal year 2082/83, a budget of NPR 411.01 billion was allocated for debt service expenditure. By the end of Falgun, NPR 242.26 billion had been paid, which is 58.94 percent of the annual budget allocation. Based on GDP, the total debt service expenditure as of the end of Magh stood at 3.97 percent.