SATV Kathmandu Nov 02: The total outstanding debt of the government reached Rs. 2,724.65 billion as of mid-October, 2025 of the current fiscal year 2025/26.

According to the report of the Public Debt Management Office under the Ministry of Finance, public debt of the government has surged by Rs. 50.60 billion during the first quarter of the current fiscal year.  

The domestic debt was added by Rs. 9.85 billion and external debt by Rs. 40.76 billion during the first three months of the current fiscal year.

During the first quarter of the current fiscal year 2025/26, the total outstanding debt has increased by 1.9 per cent consisting of an increase in external debt and domestic debt by 2.9 per cent and 0.8 per cent, respectively.

The public debt of the government was Rs. 2,674.04 billion by the end of the last fiscal year 2024/25.

Out of total debt, external debt comprises Rs. 1,446.58 billion and domestic debt comprises Rs. 1,278.07 billion.

External public debt represents more than half of total outstanding public debt as of mid-October of the current fiscal year. 

Share of external public debt to the total outstanding debt is 53.39 per cent while the share of domestic debt is 46.91 per cent.

Debt mobilisation stands at 16.93% of annual target

The government has mobilised an additional loan of Rs. 100.84 billion during the first three months of the current fiscal year out of the annual target of Rs. 595.66 billion. 

Out of additional public debt, the government has mobilised a loan of Rs. 90 billion under the domestic debt and Rs. 10.84 billion under the external debt.

The government has set a target of collecting an additional Rs. 595.66 billion loan to meet the budget deficit. Out of this, Rs. 362 billion is aimed to be collected through domestic borrowing and Rs. 233.66 billion through external loans.  

According to the report, this debt mobilisation during the review period is only 16.93 per cent of the annual target.

Of this, the share of internal and external debt is 24.86 per cent and 4.64 per cent respectively. 

Rs. 109.89 billion spent on debt servicing The government has spent about Rs. 109.89 billion for the payment of principal and interest payment during the first three months of the current fiscal year. 

The data also shows that the government has paid only Rs. 90.50 billion as principal payments and Rs. 19.38 billion as interest of such loans. 

The government has paid Rs. 80.15 billion for principal payment and Rs. 16.26 billion for interest of domestic loans. 

Likewise, the government has spent Rs. 10.35 billion for principal payment and Rs. 3.12 billion for interest of external debt.

The government has spent 26.74 per cent of the total budget allocation for principal and interest payment during the review period of the current fiscal year.

The government has allocated budget of Rs. 411.01 billion for financial management for the current fiscal year.