The government’s public debt has reached NPR 2.975 trillion as of the first 10 months of the fiscal year 2082/83. By the end of Baishakh, the total public debt-to-GDP ratio stood at 45.08 percent, reflecting a decline compared to the ratio in Chaitra. The High-Level Commission on Economic Reform has recommended strict prohibitions on domestic borrowing for current and administrative expenses.
Kathmandu, 5 Jestha — The public debt the government must repay has reached NPR 2.975 trillion. According to the Public Debt Management Office, during the 10 months of the current fiscal year 2082/83 (from Saun to Baishakh), the size of public debt approached NPR 3 trillion. By the end of Baishakh, public debt increased by NPR 532.91 billion. During the same period, repayments amounted to NPR 231.92 billion. Therefore, the net increase in public debt over these 10 months was approximately NPR 39.9 billion, according to office data.
At the end of the previous fiscal year, Asar, public debt was NPR 2.674 trillion. By the end of Baishakh, domestic debt stood at NPR 1.381 trillion and external debt at NPR 1.593 trillion. Additional pressure on external debt this year came from the strengthening of the US dollar. Due to exchange rate fluctuations, a further NPR 167.75 billion was added to external debt liabilities. The net borrowing by the government during this period was NPR 365.16 billion, with the remainder of the increase attributed to exchange rate effects, the office reported.
As of Baishakh, public debt was NPR 1.381 trillion domestic and NPR 1.593 trillion external, totaling NPR 2.975 trillion. The new GDP valuation caused the public debt ratio to decline. Based on the total gross domestic product (GDP), public debt ratio was 45.08 percent at Baishakh. This assessment uses updated GDP figures released by the National Statistics Office on 15 Baishakh 2083. Consequently, the public debt ratio has declined compared to Chaitra, when it was 48.04 percent. Until the previous month, the office computed public debt ratios using GDP figures from 15 Baishakh 2082.
The National Statistics Office’s data shows that the economy, valued at around NPR 6.1 trillion the previous year, has increased to NPR 6.6 trillion this fiscal year. Based on this, external debt accounts for 24.15 percent of GDP, and internal debt accounts for 20.93 percent.
In the 10 months, 61.30 percent of the public debt target was mobilized. The government set a total public debt mobilization target of NPR 595.66 billion for this fiscal year. By Baishakh, NPR 365.16 billion was mobilized. Of this, domestic borrowing was NPR 298.66 billion, and external borrowing was NPR 6.649 billion by Baishakh. The fiscal year targets include NPR 362 billion for domestic debt and NPR 233 billion for external debt.
