As of May, the public debt is 26 trillion 54 billion 68 billion, i.e. 43.47 percent of GDP, 2 trillion 20 billion 58 billion rupees more debt in 11 months.
We use Google Cloud Translation Services. Google requires we provide the following disclaimer relating to use of this service:
This service may contain translations powered by Google. Google disclaims all warranties related to the translations, expressed or implied, including any warranties of accuracy, reliability, and any implied warranties of merchantability, fitness for a particular purpose, and noninfringement.
The depreciation of the US dollar compared to the exchange rate of the Nepali currency has added additional burden to the government's outstanding public debt. The monthly report of the Office of Public Debt Management shows that as the US dollar continues to rise in recent months, the additional liabilities of the public debt are increasing every month.
Head of Public Debt Management Office Gopikrishna Koirala said that due to the weakening of the Nepali currency from June 2081 to last May, an additional burden of 73 billion was added to the outstanding public debt. At the beginning of the current financial year, the total outstanding public debt was 24 trillion 34 billion rupees. By May, we have taken a loan of 4 trillion 14 billion 19 million rupees. Out of that, we paid 2 trillion 66 billion 63 million," he said, adding that the difference between the amount collected and paid during this period is 1 trillion 47 billion 56 million. But if we add 73 billion to this amount due to the weakness of the Nepalese currency, it seems that public debt has been added to 2 trillion 20 billion 58 billion rupees this year.'
Compared to the end of June 2081, the Nepalese rupee has depreciated by 2.11 percent against the US dollar at the end of May 2082. During the same period last year, the Nepali Rupee depreciated by 1.61 percent. At the end of May 2082, the buying exchange rate of one US dollar reached 136.24. At the end of June 2081, the exchange rate was 133.36.
Fluctuations in the exchange rate of foreign currencies, including the US dollar, also lead to losses on public debt obligations. If the exchange rate of the dollar falls, Nepal will benefit and if it increases, it will suffer. Due to the fall in the exchange rate of the dollar last October, the liability was reduced by about 5.5 billion rupees.
Changes in Nehru's exchange rate with foreign currencies have caused variations in the volume of external debt. If the exchange rate of the dollar falls, Nepal will benefit and if it increases, it will suffer. Compared to mid-June 2079, there was a foreign exchange loss of 59 billion 16 million rupees due to devaluation of Nehru with foreign currency in mid-June 2080. Due to changes in regulatory rates, there has been a loss in 4 out of the last 7 financial years, while in the remaining years it has been profitable.
Likewise, the outstanding public debt of the government has reached 26 trillion 54 billion 68 billion rupees by last May. Since last June, 2 trillion 20 billion 58 crores of such loans have been added. Last June, outstanding public debt was 24 trillion 34 billion 9 billion rupees. The total outstanding public debt as of last May is 43.47 percent of the gross domestic product (GDP). As of the end of May, foreign debt accounted for 52.06 percent of the total public debt and domestic debt accounted for 47.94 percent. According to the
office, the government has collected 4 trillion 14 billion 19 billion rupees in public debt in 11 months. This year, the government had set a target of collecting 5 trillion 47 billion such loans. Public debt accumulated in 11 months is 75.72 percent of the annual target. During that period, the realization of internal debt is 3 trillion 14 billion 99 crores (95.45 percent of the annual target) and external debt is 99 billion 20 billion (45.72 percent of the annual target).
The May report of the Public Debt Management Office has shown that although the receipt of internal loans is high, the amount of external loans is very low. Koirala, head of the Public Debt Management Office, said, "If the work is done according to the agreement, the external loan will be more, if not, no more loan will be received." This is 81.82 percent of the annual target. Out of this, 2 trillion 77 billion 73 crores (82.42 percent) were spent for principal and interest of internal debt and 51 billion 87 billion (78.72 percent) were spent for principal and interest of external debt.
This year, the government has set a target of raising public debt of 5 trillion 47 billion rupees. Based on the public debt raised up to last May, the government has yet to collect 1 trillion 32 billion 80 million rupees of public debt in the remaining month of this year, of which 15 billion domestic and 1 trillion 17 billion rupees external debt have yet to be collected. In the current financial year, the government has allocated 4 trillion 2 billion 85 crore rupees for debt servicing expenses. 3 trillion 29 billion 60 crore rupees have been paid till May.
Looking at the public debt owed by the government till last May, now every Nepali has about 90 thousand rupees. According to the National Census 2078 of the National Statistics Office, the population of Nepal is 291 million 64 thousand 578. This figure was calculated by dividing the outstanding public debt by this population until last May. The National Statistics Office has predicted that GDP will reach 61 trillion 7 billion rupees in the current financial year.
Economists say that ever-increasing public debt poses risks. Since the financial year 2080/81, allocations under the heading of financial management have exceeded the size of capital expenditure. They say that this is a product of continuous increase in internal and external debt. As the gap between the level of capital expenditure and the budget allocated for the financial system widens with increasing debt repayment obligations, there is a risk of shrinking the government's ability to invest in the future. Economists say that there is also a risk of financial imbalance as a result.
