Nepal’s Public Debt Crosses Rs 29 Kharba, Reaching 45 Percent of GDP

Nepal's total public debt has reached Rs 2,973 billion (Rs 29.73 kharba) as of mid September. According to the Public Debt Management Office, this debt total equals over 45 percent of the country's gross domestic product (GDP). The total debt consists of Rs 1,361 billion in domestic loans borrowed from within the country and Rs 1,611 billion in external loans borrowed from foreign lenders. Domestic borrowing makes up 20.63 percent of the GDP, while external borrowing accounts for 24.41 percent. For the current financial year, the government aims to borrow a total of Rs 658 billion. By mid-September, it had collected Rs 61 billion, which represents 9.28 percent of its yearly target. Out of this collected amount, Rs 50 billion came from domestic sources (reaching 12.20 percent of its Rs 410 billion domestic target), and Rs 11 billion came from external sources (reaching 4.45 percent of its Rs 248 billion external target). At the same time, the government has spent significant funds repaying previous debts. It set aside Rs 417 billion for debt repayments and interest payments for the full year. By mid-September, it had already paid Rs 85 billion, completing 20.34 percent of its yearly repayment budget, which accounts for 1.29 percent of the GDP.