Himal Press 
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KATHMANDU: Public debt has surged by Rs 188.3 billion over the past 10 months, reaching Rs 2,622 billion in mid-May. This debt now accounts for 42.94% of the country’s gross domestic product (GDP), according to the Public Debt Management Office.
The PDMO raises domestic debt through instruments such as treasury bills, development bonds, citizen savings bonds, and foreign employment savings bonds.
The government has set a borrowing target of Rs 547 billion for the current fiscal year. It plans to raise Rs 217 billion from foreign sources and Rs 330 billion from domestic markets. By mid-May, it had achieved 71.45% of this target, securing Rs 390.83 billion.
Public debt refers to the financial resources that the government borrows to meet its budgetary deficit. Slow revenue collection and limited grant inflows have forced the government to rely heavily on public debt to finance its spending. According to the Financial Comptroller General’s Office (FCGO), the total government expenditure over the past 10 months reached Rs 1,164.04 billion, while revenue collection was only Rs 954.92 billion. This resulted in a budget deficit of Rs 209.12 billion.
By mid-May, the government had spent Rs 308 billion on principal and interest payments for public debt. The government has set aside Rs 402 billion for this purpose in the current fiscal year.
