Kathmandu: Nepal’s total public debt has reached Rs 2,878.29 billion by mid-Falgun of the current fiscal year 2082/83, according to the Public Debt Management Office Nepal.

Debt Increases by Rs 244 Billion
The debt, which stood at Rs 2,674.4 billion at the beginning of the fiscal year, has increased by Rs 244.24 billion in eight months. The current debt now accounts for 47.13 percent of Nepal’s Gross Domestic Product (GDP).

Foreign Debt Slightly Higher
Of the total debt, 53.16 percent (Rs 1,530.18 billion) is foreign debt, while 46.84 percent (Rs 1,348.11 billion) is internal debt.

The government has set a target to mobilize Rs 559 billion in debt this fiscal year, of which Rs 295.19 billion (50.44 percent) has already been raised.

Higher Dependence on Internal Borrowing
Data shows stronger reliance on internal borrowing. Out of the Rs 362 billion internal borrowing target, 67.31 percent (Rs 243.66 billion) has been achieved. In contrast, only 24.31 percent (Rs 56.80 billion) of the external borrowing target has been met.

Rising Debt Servicing Burden
With increasing debt, the government’s repayment obligations are also rising. A total of Rs 411.1 billion has been allocated this year for principal and interest payments, of which Rs 242.26 billion (58.94 percent) has already been spent by mid-Falgun.

The office stated that debt servicing expenditure stood at 3.97 percent of GDP as of mid-Magh.