Nepal's Public Debt Exceeds Rs 2,536 Billion, Accounting for 44% of GDP

Nepal's public debt reached Rs 2,536 billion 130 million by mid-January of the current fiscal year, surpassing 44% of the country’s Gross Domestic Product (GDP), according to the Public Debt Management Office. Over the past six months, Rs 102 billion 30 million was added to the public debt, reflecting a significant rise.

At the beginning of the fiscal year on July 16, the public debt stood at Rs 2,434 billion 90 million. By January 15, it had grown by 4.2%, reaching the current figure. Of the total debt, external loans account for 51.31% or Rs 1,301 billion 410 million, equating to 22.81% of GDP. Internal debt amounts to 48.68% or Rs 1,234 billion 714 million, representing 21.64% of GDP.

The government aimed to raise Rs 547 billion in public debt for the fiscal year 2082-83 BS. By mid-January, it had raised Rs 240 billion 80 million, achieving 43.89% of the target. Internal debt mobilization reached Rs 181 billion 50 million, 54.86% of the annual goal of Rs 330 billion. External loans totaled Rs 59 billion 30 million, meeting 27.20% of the Rs 217 billion target.

The government allocated Rs 402 billion 850 million for principal and interest payments on public debt for the current fiscal year. By mid-January, Rs 182 billion 400 million had been spent on debt servicing, equivalent to 3.20% of GDP.

This rising debt highlights the need for careful fiscal management as the government seeks to balance public spending and economic growth.