KATHMANDU: The current coalition government of the Nepali Congress and CPN-UML has increased the country’s public debt by nearly Rs 180 billion.
According to a report by the Public Debt Management Office, Nepal’s total public debt stood at Rs 2.434 trillion at the end of the last fiscal year. By mid-January 2025, the debt had risen by Rs 179.96 billion, reaching Rs 2.611 trillion.
Public debt now accounts for 45.77% of Nepal’s Gross Domestic Product (GDP). The depreciation of the Nepali currency has also contributed to the increase, adding Rs 36.59 billion to the debt burden.
Of the total public debt, Rs 1.282 trillion (22.49% of GDP) is domestic debt, while external debt stands at Rs 1.253 trillion (23.28% of GDP).
The government had set a target of mobilizing Rs 547 billion in public debt for the current fiscal year, of which Rs 290.57 billion (53.12% of the annual target) has been secured as of mid-January.
Domestic borrowing accounts for 69.44% of this amount, while external loans make up 28.31%. To meet its annual target, the government still needs to secure Rs 256.42 billion.
For debt servicing, the government allocated Rs 402.85 billion for the fiscal year. By mid-January, it had repaid Rs 188.75 billion, meeting 46.85% of its target.
CPN-UML Chair KP Sharma Oli took office as Prime Minister on July 15, 2024, with party Vice Chair Bishnu Prasad Paudel serving as the Deputy Prime Minister and Finance Minister.
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