KATHMANDU: The public debt obligation of Nepal has now surpassed 45 percent of the country’s Gross Domestic Product (GDP).
According to a report from the Public Debt Management Office, the government’s total loan stood at Rs 2.611 trillion as of February 12 in the current fiscal year (2024/25).
“The public debt was Rs 2.434 trillion at the start of this fiscal year and has increased by Rs 176 billion by February 12. The total public debt now stands at 45.77 percent of the country’s GDP,” the report stated.
Of the total public debt, 50.87 percent is external, and 49.13 percent is internal. The internal loan reached Rs 1.282 trillion, while the external loan amounted to Rs 1.328 trillion.
An additional burden of Rs 36.59 billion has been added to the debt due to the depreciation of the Nepali currency against the US dollar.
The government had set a target of raising Rs 547 billion in public debt for the current fiscal year. As of now, Rs 290.57 billion in public loans has been mobilized, representing 53.12 percent of the annual target.
For the current fiscal year, the government aims to raise Rs 330 billion through domestic loans and Rs 217 billion through external loans.
As of February 12, Rs 229.15 billion has been raised in domestic loans, while Rs 61.42 billion has been raised in external loans. This accounts for 69 percent of the domestic loan target and 28.31 percent of the external loan target for the year.
Additionally, the government has allocated Rs 402.85 billion for the repayment of principal and interest on public debt.
According to the Office, Rs 178.75 billion has already been paid towards the principal and interest over the past seven months. Debt servicing expenditures as of February 12 have reached 3.31 percent of the GDP.
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