Govt debt rises by over Rs 14bn in 1st month FY 2025/26

KATHMANDU: Government debt increased by more than Rs 14 billion in the first month of the current fiscal year 2025/26, the Public Debt Management Office said.

According to a report on the status of public debt as of August 16, total public debt stood at Rs 2,669.57 billion at the start of the fiscal year and rose by Rs 14.03 billion over Shrawan, reaching Rs 2,683.60 billion. This amount accounts for 43.94% of GDP.

The share of foreign debt in total public debt is 52.26% (over Rs 1,402.30 billion), while domestic debt makes up the remaining 47.74%.

The government has set a target of mobilising Rs 595 billion of public debt for the current fiscal year. By the end of Shrawan, the office reported that it had already raised Rs 44.57 billion in loans, equivalent to 7.49% of the annual target.

Of the Rs 362 billion internal-loan target, Rs 40 billion (11.05%) was raised in Shrawan. The external-loan target stood at Rs 233.66 billion, of which Rs 4.57 billion (1.96%) was raised in the same month.

A budget provision of Rs 411 billion has been made for interest payments on government loans in the current fiscal year, and by the end of Shrawan Rs 36.68 billion had already been paid. The sums set aside for servicing public debt and paying interest amount to 8.92% of the annual budget.

By RSS