Public debt rises to over Rs 2,878bn, hits 47 pc of GDP: PDMO

KATHMANDU: Public debt in the first eight months of current fiscal year 2025/26 has increased by over Rs 204 billion, reaching Rs 2,878.29 billion, according to Public Debt Management Office (PDMO).

At the start of the fiscal year, which began in mid‑July, public debt stood at Rs 2,674.04 billion. By the end of Fagun, the government owed Rs 1,348.11 billion in domestic borrowing and Rs 1,530.18 billion in external debt; external debt accounted for 53.16% of total public debt while domestic debt made up 46.84%.

Total public debt so far amounts to 47.13% of gross domestic product (GDP).

The government aims to mobilise Rs 559 billion in public debt in the current fiscal year. By the end of Fagun (mid‑March), Rs 295.19 billion had been raised, equal to 50.44% of the target. Of the domestic borrowing target of Rs 362 billion, Rs 243.66 billion has been collected (67.31%); of the external borrowing target of Rs 233.66 billion, Rs 56.89 billion has been raised (24.31%).

The government has allocated Rs 411 billion for repayment of principal and interest on public debt in the current fiscal year. By mid‑March payments had reached Rs 242.26 billion, or 58.94% of the annual allocation.

The office stated that, based on GDP, the total debt‑servicing cost up to the end of Magh (mid‑February) stands at 3.97%.