KATHMANDU, March 20: As of mid-March in the current fiscal year 2024/25, the government's outstanding debt reached Rs 2.68 trillion. The Public Debt Management Office's report for the second quarter of this fiscal year reveals that the government added about Rs 205 billion to its debt this fiscal year alone.
"The total public debt stood at Rs 2.43 trillion at the beginning of the fiscal year. By mid-March, the government has added Rs 241.93 billion, bringing the total public debt to Rs 2.68 trillion. This constitutes 46.91 percent of the total Gross Domestic Product (GDP)," the report stated. The office also reported that changes in foreign currency exchange rates increased Nepal's public debt liability by Rs 66.29 billion by mid-March.
Public debt exceeds Rs 2.434 trillion, increasing by over Rs 30...
Meanwhile, foreign debt makes up 50.83 percent of the total public debt, amounting to Rs 1.36 trillion, while domestic debt comprises 49.16 percent, totaling Rs 1.316 trillion. The ratio of domestic debt to the total Gross Domestic Product (GDP) is 23.06 percent, and the ratio of external debt is 23.85 percent.
The government set a target to raise a total of Rs 547 billion in public debt for the current fiscal year. By mid-March, the government had secured Rs 334.62 billion in debt, according to the office. The public debt raised by the second quarter amounts to 61.17 percent of the annual target.
The government set a target to raise Rs 330 billion in domestic debt this year and has secured 81.56 percent of this target so far, amounting to Rs 269.15 billion. However, as of mid-March, the government has only secured 30.17 percent of the external debt target. The government aimed to raise Rs 217 billion in external debt for the current fiscal year, but so far, it has only secured Rs 65.47 billion, according to the office's report.
The government allocated a budget of Rs 428.5 billion for debt servicing this year. By mid-March, the government had paid 50.08 percent of the debt service, amounting to Rs 217.2 billion. Based on the total Gross Domestic Product, the total debt service cost up to mid-March accounts for 3.54 percent.
