Nepal’s total public debt has reached Rs 2.67 trillion (Rs 26.69 kharba) by the end of the fiscal year 2081/82. According to the Public Debt Management Office, the government added Rs 231 billion in new debt during that single year.
Out of the total debt, 52.49% is foreign debt while 47.51% is internal. In terms of GDP, internal debt makes up 22.14%, and external debt stands at 24.56%.
In the last fiscal year, the government was able to raise 100% of its targeted domestic loans. However, only around 57% of the targeted foreign loans were received.
- Domestic debt raised: Rs 330 billion (target achieved)
- Foreign debt raised: Rs 125.39 billion (target was Rs 217 billion)
The government had aimed to mobilize Rs 547 billion in total debt for the fiscal year Rs 330 billion domestically and Rs 217 billion from external sources. But by the end of the year, only 83.25% of that goal was achieved.
A significant portion of the budget went toward paying back existing loans and interest. Out of the Rs 402.85 billion allocated for debt servicing, Rs 362.59 billion had been paid by the end of the fiscal year. This is 90.01% of the total amount set aside for this purpose.
Nepal’s public debt is increasing steadily, with a heavy burden already falling on the national budget to cover repayment and interest. The reliance on internal borrowing is growing stronger, while foreign loan inflows are lagging behind targets.
