Public debt size reaches Rs 2,878 billion

Kathmandu, March 17: The size of public debt in the first eight months of the current fiscal year has increased by over Rs 204 billion, reaching Rs 2,878.29 billion.     

According to the Public Debt Management Office, at the beginning of the current fiscal year 2082–83 BS (2025–26), which commenced in mid-July, public debt stood at Rs 2,674.04 billion.     

During this period, the government owes Rs 1,348.11 billion in domestic borrowing and Rs 1,530.18 billion in external debt. Of the total public debt by the end of Fagun, the share of external debt is 53.16 percent, while domestic debt accounts for 46.84 percent.     

So far, the total public debt amounts to 47.13 percent of the Gross Domestic Product (GDP).     

In the current fiscal year, the government aims to mobilize Rs 559 billion in public debt. By the end of Fagun (mid-March), Rs 295.19 billion has been raised, which is 50.44 percent of the total target.     

Of the domestic borrowing target of Rs 362 billion, Rs 243.66 billion has been collected, accounting for 67.31 percent of the target.     

Similarly, of the external borrowing target of Rs 233.66 billion, Rs 56.89 billion has been raised, which is only 24.31 percent of the target.     

In the current fiscal year, the government has allocated Rs 411 billion for the repayment of principal and interest on public debt. By mid-March, payments have reached Rs 242.26 billion, which is 58.94 percent of the annual allocation.     

The office stated that, based on Gross Domestic Product (GDP), the total debt servicing cost up to the end of Magh (mid-February) stands at 3.97 percent. (RSS)