Nepal’s Public Debt Reaches Rs 2.676 Trillion, Rising by Rs 241.93 Billion

Nepal's public debt has surged to Rs 2.676 trillion as of mid-March, an increase of Rs 241.93 billion in the first eight months of the current fiscal year, according to the Public Debt Management Office (PDMO). The rise is attributed to unchecked government spending and weak revenue collection, adding to financial strain.

Government expenditure stood at Rs 841.14 billion during the review period, with Rs 758.58 billion allocated for regular expenses and debt servicing. Only Rs 82.56 billion was directed toward capital investment. Meanwhile, total revenue collection reached Rs 739.30 billion, leaving a deficit of Rs 101.84 billion.

Experts warn that the lack of prudent borrowing policies is worsening the debt burden. Public debt has more than doubled in the past five years, jumping from Rs 1.048 trillion in FY 2018/19 to Rs 2.434 trillion by the end of FY 2023/24. The debt-to-GDP ratio now stands at 46.91%, up from 42.65% in mid-July 2024.

A decline in the value of the Nepali currency against the US dollar has also added Rs 66.29 billion to the country's debt. Of the total public debt, Rs 1.360 trillion (50.83%) is external, while Rs 1.315 trillion (49.16%) is internal. The government has set a target of raising Rs 547 billion through public debt in the current fiscal year.