KATHMANDU: Nepal’s total public debt liability has reached Rs 2.97 trillion, according to the Public Debt Management Office.
As of the end of the month of Bhadra, the government’s outstanding debt has surpassed 45 percent of the country’s gross domestic product (GDP).
Data from the office shows that internal debt stands at Rs 1.36 trillion, while external debt liability is Rs 1.61 trillion. Based on GDP, internal debt accounts for 20.63 percent and external debt accounts for 24.41 percent of the total.
The government has set a target to mobilize Rs 658.28 billion in public debt for the current fiscal year. By the end of Bhadra, the government had already secured Rs 61.05 billion, which is 9.28 percent of the annual target. This includes Rs 50 billion in domestic borrowing and Rs 11.05 billion in external loans.
To manage debt servicing, the government has allocated Rs 417.88 billion for the repayment of principal and interest in the current budget. As of the end of Bhadra, Rs 85.01 billion has been paid, representing 20.34 percent of the annual budget allocation. The total debt service expenditure as a percentage of GDP stands at 1.29 percent for the period.
