Public Debt Increase: Over NPR 100 Billion Added in the First Two Months of the Current Fiscal Year

In the first two months (Shrawan and Bhadra) of the current fiscal year 2081/82, Nepal has added public debt amounting to NPR 104.05 billion. This debt increase has brought the total public debt to NPR 2.53 trillion. This significant rise in debt highlights the need for the government to focus on economic management.

Total Public Debt:

• At the beginning of the fiscal year, the public debt stood at NPR 2.43 trillion.

• In just two months, the debt increased by NPR 104.05 billion, bringing the total to NPR 2.53 trillion.

Internal and External Debt:

• Internal debt has reached NPR 1.23 trillion.

• External debt has reached NPR 1.29 trillion.

• Internal debt accounts for 21.66% of the total gross domestic product (GDP), while external debt accounts for 22.66%.

Per Capita Debt:

• Per capita debt has risen to NPR 86,698, an increase compared to the previous year.

Debt Repayment:

• In the first two months of the fiscal year, Nepal repaid public debt amounting to NPR 14.05 billion.

• Due to fluctuations in foreign currency exchange rates, the amount of debt Nepal has to repay has increased by NPR 30.14 billion.

• Out of the target to repay NPR 402 billion in debt for the fiscal year, NPR 47.72 billion (11.84% of the target) has been repaid in the first two months.

Debt Service Expenditure:

• The budget allocated for debt service expenditure for the current fiscal year is NPR 402.85 billion.

• By the end of Bhadra, NPR 47.72 billion has been paid, which is 11.84% of the annual budget.

The rise in public debt in the first two months of the current fiscal year, along with the increase in per capita debt, signals a challenging outlook for Nepal's economy. The government needs to ensure effective management and repayment of this debt to maintain economic stability and avoid financial distress.