Nepal Adds Rs 84 Billion to Public Debt in First Four Months of FY 2081-82

Nepal’s public debt has risen by approximately Rs 84 billion in the first four months of the current fiscal year (2081-82 BS, 2024-25), according to the Public Debt Management Office. As of mid-November, the country’s total public debt stands at Rs 2518.05 billion, amounting to 44.94 percent of the Gross Domestic Product (GDP).

At the start of the fiscal year, Nepal’s public debt was Rs 2434.09 billion. Over the four-month period, it increased by Rs 83.95 billion. Of the total public debt, internal debt accounts for Rs 1252.16 billion (21.95 percent of GDP), while external debt stands at Rs 1265.89 billion (22.19 percent of GDP).

Debt Mobilization and Fiscal Targets

The government aims to mobilize Rs 547 billion in public loans during the fiscal year. By mid-November, Rs 165.72 billion (30.30 percent of the annual target) had been raised.

For internal borrowing, the government set a target of Rs 330 billion for the year and has already raised Rs 144 billion, achieving 43.64 percent of the annual target. Meanwhile, external borrowing, targeted at Rs 217 billion, reached only Rs 21.72 billion (10.1 percent of the target) by mid-November.

Debt Repayment

A budget of Rs 402 billion has been allocated for the reimbursement of public loan principal and interest during this fiscal year. As of mid-November, Rs 108.14 billion—1.90 percent of GDP—had been spent on debt servicing.

Growing Debt and Fiscal Pressure

The rising public debt, now nearing 45 percent of GDP, underscores growing fiscal pressure. While internal debt slightly outweighs external debt, the slower mobilization of external loans suggests challenges in securing international funding. The government’s ability to manage these debts while meeting its repayment obligations will be crucial to maintaining fiscal stability in the coming months.