The government's internal debt is growing quickly; by October,  the target of 1.5 trillion.

The current fiscal year's first quarter will see the government gather 1 trillion and fifteen billion rupees internally. For the current fiscal year, the government wants to raise $3 trillion, or $30 billion, through domestic debt. Gilgraj Mainali, the head of the Public Debt Management Office, stated that as of Tuesday, roughly 30 billion in domestic debt had been collected in accordance with the same strategy.

Up until now, 9 and 11-year development bonds and various-period Treasury bills have been used to collect almost 30 billion rupees of internal debt. We are going to be selling six-year development bonds on Wednesday, July 30," he stated. "The 11-year development bonds' average interest rate has remained at 5.28 percent. In contrast, the interest rate on these bonds was almost 11% last year.

According to Mainali, loan collection is moving quickly this year since banks and other financial institutions have more liquidity and low interest rates. "If this situation continues, there is a plan to raise the amount allocated for domestic debt collection in the second, third and fourth quarters," according to him, but "the domestic debt cannot be collected more than the target set by the government for this year." Nonetheless, the domestic debt collection plan scheduled for the second, third, and fourth quarters may be advanced with the government's approval.

The government has constantly increased the national debt while putting an emphasis on low risk and low cost. In the current environment of low interest rates and increased financial system liquidity, bank deposits are invested while government loans are obtained at low cost of borrowing. He explained that this is the reason the agency examines the financial system's current situation in order to function.

Although there has been discussion about the possibility that Nepal's national debt is beginning to rise, Mainali argues that this is not the actual case. The total amount of outstanding state debt as of late June was 24 trillion 33 billion rupees. At an average interest rate of five percent, four billion rupees of that have been invested in public institutions "added the speaker. This is not a substantial sum. It ought to be regarded as mild. He argues that the public debt has not reached a risky level if care is taken to use loans wisely.

The government has set aside 18 trillion 60 billion 30 million for the current fiscal year. 11 trillion 40 billion 66 million is the current account, or 61.31 percent; 3 trillion 52 billion 35 million is the capital, or 18.94 percent; and 3 trillion 67 billion 28 million is the financial system, or 19.74 percent. Financial transfers to the provincial and local levels have been allotted 4 trillion 8 billion 87 crore rupees out of the overall allotment.

According to government forecasts, 5 trillion 47 billion 67 billion will come from foreign grants and 12 billion 60 billion 30 billion from revenue. To close this deficit, the government plans to collect 2 trillion 17 billion 67 billion rupees from foreign loans and 3 trillion 30 billion rupees from local loans.

The government intends to raise 66.5 billion in the second quarter, 73 billion in the third, and 75.5 billion in the fourth, per the office's program. The government issues a variety of short-term (less than a year), medium-term (one to five years), and long-term (more than five years) instruments for the purpose of collecting domestic debt.

By the end of June of last year, the government's outstanding public debt was 24 trillion, 33 billion, 23 billion, and 94 million rupees. Approximately 1 trillion 35 billion rupees worth of debt has been added in the last year alone. This represents the cumulative total of the national debt as of June 1, 1980, and June 1, 1981. The total amount of debt at the start of the most recent fiscal year was 22 trillion 99 billion rupees. The government failed to reach its goals for public debt collection, capital expenditures, foreign aid and grant mobilization, revenue collection, and capital expenditures in the most recent fiscal year.

The government set a goal to recover 4 trillion 52 billion rupees worth of public debt last year. As of the end of June, 3 trillion 58 billion 295 million loans had been obtained. This amounts to 79.08 percent of the yearly goal. Even though domestic debt collection is approaching the goal at this time, external debt collection is in a catastrophic state.