Nepal’s sovereign debt increased by more than Rs 14 billion in the first month (Saun) of the current fiscal year 2082/83 BS (2024–25), according to the Public Debt Management Office.

बिज्ञापन

A report published by the Office on the status of public debt as of August 16 reveals that Nepal’s total public debt stood at Rs 2 trillion 669 billion 570 million at the beginning of the fiscal year. By the end of Saun, this figure had risen by Rs 14 billion 20 million, reaching Rs 2 trillion 683 billion 600 million—equivalent to 43.94 percent of the country’s Gross Domestic Product (GDP).

बिज्ञापन

Of the total public debt, foreign debt accounts for 52.26 percent, amounting to Rs 1 trillion 402 billion 470 million 650 thousand, while domestic debt comprises the remaining 47.74 percent.

For the current fiscal year, the government has set a target to mobilize Rs 595 billion in public debt. As of mid-August (end of Saun), the government had already raised Rs 44 billion 570 million, which is 7.48 percent of the annual target.

बिज्ञापन

Breaking down the borrowing:

Internal Loans: The government aims to raise Rs 362 billion in domestic loans. Of this, Rs 40 billion (11.05 percent of the target) was mobilized in the first month.

External Loans: Against a target of Rs 233 billion 663 million 100 thousand, Rs 4 billion 574 million 800 thousand (1.96 percent) was secured in Saun.

In terms of debt servicing, a budget of Rs 411 billion has been allocated for interest payments on government loans for this fiscal year. By the end of the first month, the government had already paid Rs 36 billion 680 million in interest. This amount accounts for 8.93 percent of the annual budget.

The report highlights the increasing burden of public debt and underscores the government’s reliance on both internal and external borrowing to meet its financial obligations.