Nepal Rastriya Dainik
April 17, 2026 ,
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Nepal’s Public Debt Rises by Rs 14 Billion in First Month of Fiscal Year

Posted on by नेपाल राष्ट्रिय दैनिक

Kathmandu – Nepal’s public debt increased by more than Rs 14 billion during the first month of the current fiscal year 2082/83 , according to the Public Debt Management Office.

The report shows that total government debt stood at Rs 2.669 trillion at the beginning of the fiscal year and reached Rs 2.684 trillion by mid-August. This figure accounts for 43.94 percent of the country’s gross domestic product (GDP).

Out of the total debt, 52.26 percent, Rs 1.42 trillion, is external borrowing, while the remaining 47.74 percent, or Rs 1.264 trillion, is domestic borrowing.

The government has set a target of raising Rs 595 billion in debt this fiscal year. By the end of Shrawan , Rs 44.57 billion, 7.48 percent of the annual target, had been raised, which includes Rs 40 billion from domestic loans and Rs 4.57 billion from external loans.

Meanwhile, Rs 36.68 billion has already been spent on interest payments from the Rs 411 billion allocated for debt servicing in the current budget. This amount represents 8.93 percent of total government expenditure.

Govt to raise Rs 113 billion in domestic debt by mid-October

Posted on by नेपाल राष्ट्रिय दैनिक

kathmandu – The government is set to raise Rs 113 billion in domestic debt by mid-October as part of its internal borrowing plan for the first quarter of the current Fiscal Year (FY) 2025/26.

According to a schedule released by the Public Debt Management Office (PDMO), the government will issue a total of 11 development bonds, each worth Rs 10 billion, with maturities ranging from three to eleven years. In addition, it plans to raise Rs 2.5 billion through Citizen Saving Bonds with a five-year maturity period, and Rs 500 million via Foreign Employment Saving Bonds.

The government’s plan to raise the debt comes amid mounting fiscal pressures driven by declining revenue and rising recurrent expenditures. In the second quarter (mid-October to mid-January), the government aims to borrow an additional Rs 85 billion internally — Rs 60 billion through development bonds and Rs 25 billion via treasury bills. The plan includes the issuance of five treasury bills of Rs 5 billion each, with maturities ranging from 28 days to one year, and six development bonds worth Rs 10 billion each, maturing in three to ten years.

From mid-January to mid-April 2026, the government plans to raise Rs 109 billion in internal debt. This includes Rs 56 billion through development bonds, Rs 50 billion through treasury bills, Rs 2.5 billion via Citizen Saving Bonds, and Rs 500 million through Foreign Employment Saving Bonds. For the final quarter of the fiscal year, the government plans to borrow another Rs 55 billion.

Of the total expenditure of Rs 1.964 trillion for FY 2025/26, the government plans to finance Rs 1.315 trillion through revenue collection. The remaining amount will be met through Rs 362 billion in domestic borrowing, Rs 233 billion in foreign loans, and Rs 53 billion in foreign grants. The government has allocated Rs 375.24 billion for interest payments and principal repayments on public debt.

By the end of FY 2024/25, Nepal’s total public debt had climbed to Rs 2.66 trillion, marking an increase of Rs 231 billion in just one year. With limited capacity to cover recurrent expenditure, the government has increasingly relied on both domestic and foreign loans to fund development and operational needs.

Former Finance Secretary Madhu Kumar Marasini warned of the economic consequences of rising debt. “The growing burden of interest and principal repayments has begun to affect public investment in development projects,” he said.

Meanwhile, the PDMO on Wednesday issued Development Bonds-2085 worth Rs 10 billion. The three-year maturity bonds will be sold through competitive bidding and can be traded in Nepal’s secondary market, according to the PDMO.

Public debt reaches Rs 2.5 trillion

Posted on by नेपाल राष्ट्रिय दैनिक

Kathmandu- As the size of public debt increases, the expenditure on debt service is also increasing. However, the situation of capital expenditure is seen to be weak compared to the increase in expenditure on debt and debt service. In the first six months of the current fiscal year, the government’s debt service expenditure has been three times higher than capital expenditure.

According to the Office of the Comptroller and Auditor General, the government has been able to spend Rs 56.935 billion on capital expenditure by the end of the current fiscal year. While the Public Debt Management Office shows that Rs 182.40 billion was spent on debt service during the same period.

The government has allocated Rs 50.50 billion more budget for debt service than capital expenditure for the current fiscal year. The government has targeted Rs 352.35 billion on capital expenditure in the current fiscal year. Whereas, Rs 402.85 billion had been allocated for debt service.

By mid-December, the government has spent 45.28 percent of the target, or Rs 182.4 billion, on debt service. Now, Rs 220.4 billion is yet to be spent under debt service. During this period, the government has spent Rs 149.67 billion on principal repayment and Rs 32.73 billion on interest payment.

The government has paid Rs 127.24 billion in principal repayment and Rs 27.95 billion in interest payment on internal debt. Similarly, Rs 22.42 billion in principal repayment and Rs 4.77 billion in interest payment on external debt. The amount spent on debt service is equivalent to 3.20 percent of the gross domestic product.

The government’s outstanding public debt has reached Rs 2.5 trillion. At the beginning of the current fiscal year, the total public debt was Rs 2.44 billion. By mid-December, the total public debt liability has increased by Rs 122.3 billion, reaching Rs 2.5 trillion. 36.13 billion, according to the office. Which is equivalent to 44.46 percent of the gross domestic product. The change in the exchange rate as of mid-December of this fiscal year has affected the increase in public debt by 11.61 billion rupees.

The target for mobilizing a total of 547 billion rupees of public debt was set in the current fiscal year. 240 billion rupees have been received as of mid-December. This is 43.89 percent compared to the annual target. This year, the target for mobilizing internal debt of 330 billion rupees has been raised as of mid-December, 54.86 percent or 181 billion rupees.

Similarly, the target for mobilizing external debt of 217 billion rupees has been raised by 27.20 percent or 59 billion rupees. According to the annual target, the government will be able to mobilize a total of 366 billion rupees, including 148 billion rupees of internal debt and 157 billion rupees of external debt, in the remaining 6 months.