Kathmandu: Nepal’s public debt increased by Rs 84 billion in the first quarter of the current fiscal year (FY) 2024/25, according to the Public Debt Management Office (PDMO). The total debt now stands at Rs 2.518 trillion, equivalent to 44.14 percent of the country’s Gross Domestic Product (GDP).
The PDMO report shows that Nepal’s total public debt was Rs 2.434 trillion at the beginning of the fiscal year. By mid-November, it had risen by Rs 83.95 billion. Of the total debt, internal debt amounts to Rs 1.252 trillion (21.95 percent of GDP), while external debt stands at Rs 1.265 trillion (22.19 percent of GDP).
The government has set an annual target to mobilize Rs 547 billion in public debt for the current fiscal year, achieving 30.30 percent of the goal by raising Rs 165 billion by the first quarter.
In terms of internal borrowing, the government aims to secure Rs 330 billion. By mid-November, it had raised Rs 144 billion, meeting 43.64 percent of the target. However, external borrowing lagged significantly, with only Rs 21.72 billion secured against a target of Rs 217 billion, representing just 10.1 percent of the goal.
Debt servicing costs remain a significant burden, with Rs 420 billion allocated in the current fiscal year for interest payments alone. By mid-November, the government had paid Rs 1.814 billion, equivalent to 1.90 percent of GDP for the reporting period.