Nepal’s Public Debt Reaches 42.08% of GDP: Government Aims for Reduction by 2029

Nepal's Public Debt Reaches 42.08% of GDP
Nepal's Public Debt Reaches 42.08% of GDP

As of mid-June 2024, Nepal’s public debt has increased to Rs 2.434 trillion, representing 42.08 percent of the country’s GDP. This is a significant rise from mid-July 2023, when the debt was Rs 2.299 trillion, accounting for 40 percent of the GDP. The National Statistics Office projects that the country’s GDP will reach Rs 5.748 trillion by the end of this fiscal year.

Comparison of Public Debt Data: 2023 vs. 2024

Year Public Debt (Rs Trillion) Debt to GDP Ratio (%) External Loans (Rs Trillion) Domestic Borrowing (Rs Trillion)
Mid-July 2023 2.299 40.0 1.149 1.150
Mid-June 2024 2.434 42.08 1.207 1.192
Mid-July 2029 (Target) 39.0 (Target)

Nepal’s debt includes Rs 1.207 trillion in external loans and Rs 1.192 trillion from domestic borrowing. Over the past decade, the public debt to GDP ratio has increased from 24.8 percent to 42.08 percent. Finance Minister Barshaman Pun has indicated that the government aims to reduce this ratio to 39 percent by mid-July 2029, as outlined in the 16th periodic plan. This plan is part of a broader strategy to mobilize public debt under the targets set by the National Natural Resources and Fiscal Commission.

Description Value
Projected GDP (End of Fiscal Year 2024) Rs 5.748 trillion
Increase in Public Debt over the Past Decade From 24.8% to 42.08%
Aim of the 16th Periodic Plan Reduce debt to GDP ratio to 39% by mid-July 2029
Domestic Borrowing Strategy Guide National Natural Resources and Fiscal Commission

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