Outstanding government debt exceeded 27 trillion 43 billion, 69 billion 15 billion was collected in two months, 78 billion 67 billion was paid.
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As of last August, the outstanding public debt of the government has reached 27 trillion 43 billion 37 billion rupees. This is 44.92 percent of Nepal's Gross Domestic Product (GDP). As of last June, the public debt was 26 trillion 74 billion 4 billion rupees.
The Public Debt Management Office has stated that the outstanding public debt is Rs 12 trillion 81 billion 82 crore (20.99 percent of GDP) and external Rs 14 trillion 61 billion 54 crore (23.93 percent of GDP).
Compared to the end of June, outstanding public debt has increased by 69 billion 32 million rupees. During that period, 79 billion 15 loans were received and 78 billion 67 crores were paid. Of the total amount paid, 65.7 billion rupees have been spent on principal and the remaining 13.6 billion rupees have been spent on interest.
The amount used for interest payments on public debt is included in current expenditure. Therefore, 65.7 billion rupees spent on principal payments are added to the 69.15 billion raised during that period. Adding 55.23 billion rupees due to changes in the exchange rate of foreign currency to the amount coming in, the public debt has been added to 69.32 billion rupees in the last two months.
Last June, the outstanding public debt of the government was 26 trillion 74 billion 4 billion rupees. In the first two months (July and August) of the current financial year, the government has collected 79 billion 15 crores of public debt. Public debt collected during this period is 13.29 percent of the annual target.
In the last two months, the realization of internal debt is 70 billion (19.34 percent of the annual target) and external debt is 9 billion 150 million (3.92 percent of the annual target). This year, the government has set a target of raising public debt of 5 trillion 95 billion rupees. Public A report from the Office of Debt Management showed.
Last July and August, the government has paid 78 billion 67 million rupees for the principal-interest payment of the loan. This is 19.14 percent of the annual target. Out of this, 67 billion 67 crores (19.70 percent) were spent on principal and interest of internal loans and 10 billion 99 crores (16.31 percent) were spent on principal and interest on external loans. This financial year, the government has allocated 4 trillion 11 billion rupees for debt service expenses.
Due to the rise in the price of foreign currencies including the US dollar, an additional load of 55.23 billion rupees has been added to the outstanding public debt of Nepal. Last July, there was no additional load due to this reason. Due to the increase in the foreign exchange rate last August, the Nepalese currency became weaker, adding additional burden to the outstanding public debt.
If the exchange rate of the dollar falls, Nepal will benefit and if it increases, it will suffer. From June 2081 to last June, an additional load of 66.93 billion was added to the outstanding public debt due to the weakening of the Nepalese currency. Compared to mid-June 2082, the Nepalese rupee has depreciated by 2 percent against the US dollar in July. In the same period of last year, the Nepali rupee was depreciated by 0.5 percent.
Due to regulatory rate changes, 4 out of the last 7 financial years have been in losses and the remaining years have been profitable. The total outstanding public debt as of last August is 44.92 percent of the gross domestic product (GDP). The National Statistics Office has predicted that GDP will reach 61 trillion 7 billion rupees in the current financial year. As of last August, the share of foreign debt is 53.27 percent and the share of domestic debt is 46.73 percent.
Looking at the public debt owed by the government till the end of the last financial year, it is equal to about 94 thousand rupees for every Nepali. 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 June.
Economists say that ever-increasing public debt poses risks. From the financial year 2080/81 to last year, allocations under the heading of financial management exceeded the size of capital expenditure. Experts say that this is the 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. However, in the current financial year, the amount allocated for capital expenditure is more than the budget allocated by the government under the heading of financial management.
