Nepal’s public debt reaches 43.47% of GDP, tops Rs 2.65 trillion

KATHMANDU: Nepal’s public debt has surged to 43.47% of the country’s Gross Domestic Product (GDP), reaching Rs 2.65 trillion by the end of Jestha 2082, according to the Public Debt Management Office under the Ministry of Finance.

The data reveals a steady rise in both domestic and external borrowing. At the start of the current fiscal year, total public debt stood at Rs 2.34 trillion.

Within eleven months, it rose by over Rs 200 billion to reach Rs 2.65 trillion.

For the fiscal year 2081/82, the government had targeted mobilizing Rs 547 billion in public debt.

As of the end of Jestha, Rs 414.19 billion has been secured—meeting 75.72% of the annual target. Of this, domestic borrowing accounted for 76.95% and external borrowing for 23.95%.

In terms of performance, the progress in domestic and external loan mobilization stands at 15.45% and 45.72% respectively.

Regarding debt servicing, Rs 402.85 billion was allocated for principal and interest payments for the current fiscal year.

Of this, Rs 329.69 billion has already been paid, representing 81.82% of the allocated budget. Debt servicing now accounts for 5.4% of GDP.

Looking ahead, the government has earmarked Rs 357 billion under financial arrangements for loan repayments and interest for the upcoming fiscal year, nearly equivalent to the development budget of Rs 407 billion.

Officials warn that fluctuations in foreign currency exchange rates are increasing Nepal’s debt obligations, particularly in external loans.