Public debt rises by Rs 50.6bn in Q1 of FY2025/26

KATHMANDU: The public debt has increased by Rs 50.6 billion in the first three months of current fiscal year 2025/26.

According to the Public Debt Management Office, by the end of the last fiscal year, which ended on July 16, the government’s total debt stood at Rs 2,674.04 billion. As of the end of Asoj (October 17), it had reached Rs 2,724.65 billion. The debt amount is equivalent to 44.61% of gross domestic product (GDP).

Of the total sovereign debt as of October 17, foreign debt accounted for 53.09% or Rs 1,446.58 billion, while domestic debt made up 46.91% or Rs 1,278.07 billion.

In the current fiscal year, the government has set a target of mobilising Rs 595 billion in public debt. In the first quarter, it obtained Rs 100.84 billion, which is 16.93% of the annual target.

Towards domestic borrowing, the target is Rs 362 billion, and by October 1,7 the government had raised Rs 90 billion, equivalent to 24.86% of the annual target. For external borrowing, 4.65% or Rs 1.84 billion of the annual target of Rs 233.66 billion has been achieved.

In the current fiscal year, the government has allocated Rs 411 billion for interest payments on public debt. As of October 17, Rs 109.89 billion has been paid, which represents 26.74% of the total allocation.

Based on GDP, total debt‑servicing expenditure as of October 17 stands at 1.80%.

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