Himal Press 
KATHMANDU: Nepal’s outstanding public debt has increased by over Rs 204.25 billion over the eight months of the fiscal year 2025/26.
According to the Public Debt Management Office, total outstanding debt stands at Rs 2,878.29 billion as of mid-March. At the beginning of the current fiscal year, i.e., mid-July last year, the total public debt stock stood at Rs 2,674.04 billion.
The country’s total outstanding debt has climbed to 47.13% of the Gross Domestic Product (GDP), reflecting continued reliance on borrowing to finance government expenditure.
Total government receipts, including revenue, grants, and other receipts, stood at Rs 765.10 billion over the first eight months of the fiscal year, while its total expenditure during the period totaled Rs 926.58 billion.
According to the monthly data released by the PDMO, external loans make up a slightly larger share of the debt portfolio. Of the total outstanding amount, foreign debt accounts for 53.16%, while domestic borrowing constitutes 46.84%.
During the first eight months of the fiscal year, the government mobilized Rs 295.19 billion in public debt. This represents 50.44% of its total borrowing target of Rs 595 billion for the current fiscal year. The government has met 67.31% of its domestic debt borrowing target as of mid-March, while external borrowing lags at 24.31%.
Meanwhile, debt servicing continues to consume a significant portion of government resources. The government has allocated Rs 411.01 billion for debt servicing in the current fiscal year. According to the PDMO, Rs 242.26 billion, 58.94%, of the allocated sum has already been spent as of mid-March.
Debt servicing costs accounted for 3.97% of GDP.
