Over 25 trillion dollars in public debt, raised one trillion dollars in just two months

The national debt of Nepal is now more than 25 trillion 28 billion rupees.

By the end of July, the debt had reached 24 trillion 72 billion rupees by the end of the previous fiscal year. It has reached 25 billion 28 billion 600 million rupees by the end of August.

To cover its target spending, the government increases the national debt. Over the past ten years, the public debt has significantly expanded.

The public debt to GDP ratio is at its highest point in the previous eighteen years. The subject of how much these loans have contributed to strengthening the economy is given attention, despite the fact that their amount grows year.

The ratio of the nation's economy is examined in order to determine the amount of public debt.

The current GDP of Nepal is 57 trillion rupees. The ratio of the public debt to the GDP is now 44.34 percent.

Some nations have budgeted for spending and taken on more public debt than their economies can support.

According to the World Bank, the International Monetary Fund, and other organizations, debt levels of up to 60% are typical given the size of the economy. On the other hand, experts claim that the usage of the loan makes sense.

The amount of the internal debt spent in each specific sector has not been tracked by the government. Road infrastructure and other sectors account for 77% of economic activities when it comes to external debt, whilst education, health, social development, and environmental protection receive 8%, 7%, 5%, and 1% of the total.

Currently, Nepal's public debt as a percentage of GDP is higher than it has been over the previous eighteen years. During the fiscal year 2062–2063 the public debt to GDP ratio was 49.52 percent.

After thereafter, it dropped annually until it reached 22.28 percent in the fiscal year 2071–2022. Nepal's national debt was five trillion four billion at that point.

Following the earthquake in 2072, the governmental debt has been steadily rising. During the past ten years, the public debt has grown fivefold. There has been a significant increase in the national debt, particularly during the fiscal year 2076–2077.
The total debt as of the fiscal year 2075–2076 was 10 trillion 47 billion rupees. It once hit 14 trillion 32 billion rupees during the fiscal year 2076–2077.

The weight of external debt was formerly higher than the burden of internal debt, but recently, the two debt loads have begun to resemble one another.

The total amount of domestic debt as of the end of August is 12.35 billion 900 million rupees. Comparably, international debt totals 12 billion 92 billion 71 billion.

In just two months, about one billion extra loans were obtained.

More than one trillion four billion loans have been collected just in July and August. which has raised internal debt totaling 90 billion rupees. Just 14 billion rupees have been obtained in foreign financing.

The goal established by the government for this year is to raise the national debt by $3 trillion, or $30 billion. Similarly, it is predicted that foreign loans of $2 trillion and 17 billion will be received.

In just two months, services totaling 47.71 billion rupees have been paid for.

This table shows the costs associated with commission, interest payments, and public debt repayment. It appears that this year's public debt raising may not match the amount spent on services.

According to the budget forecast, five trillion 47 billion rupees would be received and four trillion two billion rupees will be spent on services.

Even while the aim for domestic debt is met, only 30–35 percent of the target for foreign debt is attained. Because of this, the service charge can exceed the amount of the loan, according to Ministry of Finance officials.