Nepal’s outstanding public debt stood at Rs. 2.973 trillion by the end of Bhadra, after the government collected Rs. 61.05 billion in new debt and repaid Rs. 85 billion during the first two months of FY 2083/84.

The outstanding debt at the end of Ashar 2083 stood at Rs. 2.68168 trillion. Despite the increase in new borrowing, the government’s higher repayments meant that outstanding debt was lower during Bhadra than it had been in the previous months.

Public debt at the end of Bhadra was equivalent to 45.07% of Nepal’s GDP. The government has set a target of bringing the debt-to-GDP ratio down to 43% by the end of the current fiscal year.

Of the Rs. 61.05 billion borrowed during Shrawan and Bhadra, 81.89% came from domestic borrowing and 18.11% from external borrowing. The amount represents 9.27% of the government’s annual public borrowing target.

Foreign exchange movements are also adding to Nepal’s debt burden. Foreign-currency debt accounted for 54.19% of outstanding public debt, compared with 45.81% for domestic debt. As the Nepali rupee weakens against currencies such as the US dollar, the rupee value of existing external debt increases even without equivalent new borrowing.

According to the Public Debt Management Office, changes in foreign exchange rates added around Rs. 436.3 million to Nepal’s outstanding debt burden during the last fiscal year. Nepal’s external debt is mainly repaid in foreign currency, meaning exchange-rate movements can increase the rupee cost of repayment.

The government has budgeted Rs. 2.124 trillion for the current fiscal year amid limited revenue collection and substantial mandatory spending obligations. The combination of a large budget, constrained revenue and debt-servicing requirements could put further pressure on public borrowing during the year.

Nepal’s public debt has risen substantially over recent years. Public Debt Management Office data cited by Kantipur shows outstanding debt had reached around Rs. 2.9749 trillion by the end of Ashar 2083, up by roughly Rs. 300 billion from a year earlier.