Public debt rises by Rs 50.6 billion in first quarter of FY

KATHMANDU: Nepal’s public debt has increased by Rs 50.6 billion in the first quarter of the fiscal year 2025/26, reaching a total of Rs 2,724.65 billion by October 17. This is a rise from the Rs 2,674.04 billion debt recorded at the end of the previous fiscal year on July 16.

According to the Public Debt Management Office, the government’s total debt now represents 44.61% of the country’s Gross Domestic Product (GDP).

Of the total public debt, foreign debt constitutes 53.09% (Rs 1,446.58 billion), while domestic debt accounts for 46.91% (Rs 1,278.07 billion).

For the current fiscal year, the government has set a target to raise Rs 595 billion in public debt. In the first quarter, Rs 100.84 billion was mobilized, which is 16.93% of the annual target.

Domestic borrowing aims to raise Rs 362 billion, with Rs 90 billion already secured, amounting to 24.86% of the target. Meanwhile, foreign borrowing stands at Rs 1.84 billion, or 4.65% of the external borrowing target of Rs 233.66 billion.

The government has also allocated Rs 411 billion for interest payments on public debt this year. As of October 17, Rs 109.89 billion has been paid, representing 26.74% of the total interest allocation.

Total debt servicing expenditure as of October 17 accounts for 1.80% of GDP.