Nepal's Public Debt Surges by Over 250 Billion in First Nine Months of Fiscal Year 2082/83

Kathmandu. In the first nine months of the current fiscal year 2082/83, Nepal's public debt has increased by more than 250 billion rupees. 

According to the report published by the Public Debt Management Office under the Ministry of Finance up to the end of Chaitra, Nepal's total public debt has reached 2.933 trillion 790 million rupees.

At the beginning of the fiscal year, i.e., up to Shrawan 1, Nepal's total public debt was 2.674 trillion 40 million rupees. By the end of Chaitra, including losses due to exchange rate fluctuations, the total debt has increased by 259 billion 740 million rupees.

With this increase, Nepal's total public debt has now reached nearly half of the country's Gross Domestic Product (GDP), at 48.04 percent.

Higher Burden of External Debt Compared to Internal

Of the total public debt, the share of external (foreign) debt is higher, amounting to 1.545 trillion 670 million rupees, which is 52.69 percent of the total debt and 25.31 percent of the GDP.

Similarly, internal debt stands at 1.388 trillion 110 million rupees, which is 47.31 percent of the total debt and 22.73 percent of the GDP.

58 Percent of Target Collected in 9 Months

The government had set a target to mobilize a total of 595 billion rupees in debt for the current fiscal year. However, by the end of Chaitra, only 58.45 percent of the annual target, or 348 billion 150 million rupees, has been received. 

During this period, the Public Debt Management Office stated that the government has taken 283 billion 660 million rupees in internal debt and 64 billion 480 million rupees in external debt. 

250 Billion Spent on Principal and Interest Payments

A significant portion of the debt taken by the government has been spent on repaying the principal and interest of previously acquired loans. Out of the 411 billion 10 million rupees allocated for principal and interest payments in the current fiscal year, 258 billion 440 million rupees have already been paid by the end of Chaitra. This is 62.88 percent of the total allocated budget. 

Of the total amount paid, 209 billion 380 million rupees were paid for internal debt principal and interest, and 49 billion 60 million rupees for external debt. This expenditure on debt servicing accounts for 4.23 percent of the country's total GDP.