KATHMANDU: The government’s outstanding debt has surged to Rs 2.676 trillion as of February in the current fiscal year 2024/25, according to a debt report released by the Public Debt Management Office.
This marks an addition of approximately Rs 250 billion in public debt during this fiscal year alone (first eight months).
The report reveals that the total public debt stood at Rs 2.434 trillion at the beginning of the current fiscal year. By February, it had increased by Rs 241.93 billion, reaching a total debt liability of Rs 2.676 trillion—equivalent to 46.91% of the country’s Gross Domestic Product (GDP).
One of the key factors contributing to the rise in public debt is the fluctuation in the foreign exchange rate, which has added Rs 66.29 billion to the total debt liability as of February.
The report shows that foreign debt accounts for 50.83% of the total debt, amounting to Rs 1.360 trillion, while domestic debt makes up 49.16%, or Rs 1.315 trillion. The ratio of domestic debt to GDP stands at 23.06%, while external debt accounts for 23.85% of GDP.
The government had set a target of raising Rs 547 billion in public debt for the current fiscal year. By February, Rs 334.62 billion—representing 61.17% of the annual target—had already been received.
Of the planned Rs 330 billion in domestic debt, 81.56% (Rs 269.15 billion) has been raised so far. However, external debt receipts remain significantly lower, with only 30.17% of the target (Rs 65.47 billion) achieved.
The government allocated Rs 42.85 billion for repaying the principal and interest on public debt this fiscal year. By February, 50.08% of this amount—Rs 217.2 billion—had been repaid. The total debt servicing expenditure so far is equivalent to 3.54% of GDP.
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