KATHMANDU: The government raised Rs 23.3 billion in public debt during the first month of the current fiscal year, including Rs 20 billion in domestic borrowing and Rs 3.3 billion in external loans.
According to the Public Debt Management Office, the government repaid Rs 20.07 billion in principal during the same period—Rs 17.91 billion in domestic debt and Rs 2.15 billion in external debt.
Despite borrowing more than it repaid, the government’s outstanding public debt fell by Rs 5.35 billion during the month due to an exchange-rate gain of Rs 8.58 billion.
Outstanding public debt stood at Rs 2976.34 billion at the end of Shrawan, down from Rs 2981.69 billion at the end of the previous fiscal year. The debt is equivalent to 45.10% of Nepal’s gross domestic product (GDP).
Rs 6.84 billion spent on interest
The government spent a total of Rs 24.996 billion on debt servicing in Shrawan, including Rs 6.84 billion in interest payments.
Of the interest bill, Rs 5.34 billion was paid on domestic debt and Rs 502.4 million on external debt. Total debt-servicing expenditure during the month was equivalent to 0.38% of GDP.
For the current fiscal year, the government has set a target of raising Rs 658.28 billion through public borrowing. Borrowings in Shrawan accounted for 3.54% of the annual target.
The government has allocated Rs 417.88 billion for principal and interest payments during the current fiscal year. Debt-servicing expenditure in the first month amounted to 5.98% of the annual allocation.
