Rs. 233bn public debt added in nine months

By A Staff Reporter,Kathmandu, Apr. 22: Nepal's total outstanding public debt has increased to Rs. 2,667.26 billion as of April 13, 2025, reflecting a significant rise from the previous fiscal year.

Out of total debt, external debt amounts to Rs. 1,365.32 billion and domestic debt comprises Rs. 1,301.94 billion, according to the monthly report of the Public Debt Management Office under the Ministry of Finance. 

During the first nine months of the current fiscal year 2024/25, the total outstanding debt has increased by 9.58 per cent with internal debt rising by 10.24 per cent and external one by 8.91 per cent. 

The public debt was Rs. 2,434.09 billion at the beginning of the current fiscal year and Rs. 233.17 billion was added by April 13, 2025.

Out of Rs. 233.17 billion added to public debt, Rs. 121.04 billion was added under the domestic public debt and Rs. 112.13 billion under the external public debt. 

External public debt represents more than half of the total outstanding public debt as of mid-February of the current fiscal year. The share of external public debt to the total outstanding debt is 51.19 per cent while the share of domestic debt is 48.81 per cent.

The total debt to GDP ratio is now 46.75 per cent. The external debt to GDP ratio is 23.93 per cent and the domestic debt to GDP ratio is 22.49 per cent.

At the end of fiscal year 2023/24, the debt to GDP ratio was 42.73 per cent with 21.75 per cent external debt and 22.82 per cent domestic debt.  

According to the report, the country faced an additional loan burden of Rs. 70.09 billion during the period due to the falling value of Nepali currency against the USD. 

The exchange rate of one US dollar reached up to Rs. 140.43 on February 7, 2025 while it was Rs. 134 on July 16, 2024, beginning of the current fiscal year.

About Rs. 366 billion public debt mobilised

Of the annual target of debt mobilisation, the government has mobilised Rs. 366.09 billion public debt, including domestic debt of Rs. 291.14 billion and external debt of Rs. 74.95 billion during the review period. 

The government has set a target of collecting additional Rs. 547 billion of loans to meet the budget deficit for the current fiscal year. 

Out of this, Rs. 330 billion is set to be collected through domestic borrowing and Rs. 217.67 billion through external loans. But it appears that the government won’t be able to mobilise the targeted amount of external loans. 

The total public debt raised so far is 66.93 per cent of the annual target.

The government was able to mobilise about 88.22 per cent of the annual domestic debt mobilisation target while only 34.54 per cent of the external debt mobilisation target was met during the review period.

The data also shows that the government has paid Rs. 252.48 billion as principal and interest payments of such loans. Of them, the government has paid Rs. 21.93 billion for principal and interest payments of domestic loans and Rs. 39.54 billion for external loans.

The debt servicing expenditure until mid-April, 2025 is 4.43 per cent of the GDP.

The government has allocated Rs. 402.85 billion for the payment of public debt principal and interest in the current fiscal year.