Government debt rises by 84 billion in first four months of current FY

Kathmandu / Nov 20: The government debt increased by Rs 84 billion in the first four months of the current Fiscal Year (FY) 2024/25, according to the Public Debt Management Office (PDMO). Nepal’s total public debt now exceeds 44 percent of the Gross Domestic Product (GDP).

The PDMO report revealed that total public debt stood at Rs 2.434 trillion at the beginning of the current FY. By mid-November, it had risen by Rs 83.95 billion, bringing the total debt to Rs 2.518 trillion—equivalent to 44.14 percent of the GDP.

Of the total public debt, internal debt amounts to Rs 1.252 trillion (21.95 percent of GDP), while external debt is Rs 1.265 trillion (22.19 percent of GDP).

The government aims to mobilize Rs 547 billion in public debt during the current fiscal year. By the end of the first four months, it had secured Rs 165 billion, achieving 30.30 percent of the annual target.

For internal borrowing, the government set a target of Rs 330 billion. By mid-November, Rs 144 billion had been raised, representing 43.64 percent of the target. In contrast, external borrowing, targeted at Rs 217 billion, amounted to only Rs 21.72 billion in the same period, or 10.1 percent of the target.

The government allocated Rs 402 billion in the current fiscal year to cover interest payments on its debt. As of mid-November, Rs 1.814 billion had been paid, which represents 1.90 percent of GDP during the reporting period.