The national debt obligation has surpassed 45 percent of the country’s gross domestic product. According to the report issued by the Public Debt Management Office, the government borrowing reached Rs 2.611 trillion as of February 12 in the ongoing fiscal year 2024/25.
“The national debt was Rs 2.434 trillion at the start of the current fiscal year, increasing by Rs 176 billion by February 12. The total national debt by this date totaled 45.77 percent of the nation’s GDP,” states the report. Of the overall national debt, 50.87 percent consists of external loans and 49.13 percent comprises internal loans. The domestic loan has reached Rs 1.282 trillion, while the external loan amounts to Rs 1.328 trillion.
The country incurred an extra loan burden of Rs 36.59 billion during this period due to the devaluation of the Nepali currency against the US dollar.
The government aimed to mobilize Rs 547 billion in public debt for the current fiscal year. The Office has reported that it has secured Rs 290.57 billion in public loans up to now, which accounts for 53.12 percent of the yearly target. The administration has set a goal of generating Rs 330 billion in domestic loans and Rs 217 billion in external loans during this fiscal year.
As of February 12, 2024/25, Rs 229.15 billion has been raised in domestic loans and Rs 61.42 billion in external public debt since the fiscal year commenced on July 16, 2024. The loans raised thus far for domestic purposes constitute 69 percent, while the external loans make up 28.31 percent of the yearly target.
In addition, the government has earmarked Rs 402.85 billion for servicing the principal and interest of the national debt. The Office noted that Rs 178.75 billion has been disbursed as principal and interest payments in the past seven months. The servicing costs up to February 12 amount to 3.31 percent of GDP.
