KATHMANDU: The government led by Prime Minister KP Sharma Oli has added over Rs 220.58 billion in public debt within the first 11 months of the current fiscal year, pushing the country’s total outstanding public debt to Rs 2.654 trillion by mid-June.
According to the Public Debt Management Office, Nepal’s total public debt stood at Rs 2.434 trillion at the end of the previous fiscal year. With the recent increase, the debt now accounts for 43.47% of the country’s Gross Domestic Product (GDP). Of this, 52.06% is external debt and 47.94% is internal debt.
As of the end of Jestha (mid-June), internal debt has reached Rs 1.272 trillion, equivalent to 22.31% of GDP, while external debt has climbed to Rs 1.382 trillion, representing 24.23% of GDP.
The government had aimed to mobilize Rs 547 billion in public debt for the current fiscal year. By the end of Jestha, it had secured Rs 414.19 billion, amounting to 95.45% of the internal debt target and 45.72% of the external debt target, according to the office’s report.
Additionally, the government had allocated Rs 402.85 billion for public debt servicing (interest and principal payments) this fiscal year. As of mid-June, 81% of that allocation had been spent, with 82.42% going toward domestic debt servicing and 78.72% toward external debt repayment.
The steady rise in public debt underscores increasing fiscal pressure on the government amid slower-than-expected economic recovery and rising expenditures.
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