The government paid off more than 81 billion rupees in four months of the current financial year
Kathmandu. The government has paid more than 81 billion rupees in four months of the current financial year. According to the data released by the Public Debt Management Office, the government has paid the principal and interest of the loan equal to 81.64 billion rupees till November.
Out of this, the government has paid 65.45 billion rupees for internal debt. Of the payments, 42.84 billion rupees are principal and 22.61 billion rupees are interest.
Likewise, the government has paid off its external debt obligations worth 16.18 billion rupees in October. Out of which 12 billion 600 million rupees of principal and 3 billion 58 million rupees of interest have been paid.
A trillion 13 billion debt was added
The government, which has improved the payment of debt obligations, has taken more than one billion public loans in a period of four months. According to the statistics of the office, the country has taken public debt of 1 trillion 13 billion 160 million rupees internally and externally till November.
Out of which, 97 billion 31 crores of internal and 15 billion 85 crores of external loans have been taken. In October alone, the government’s debt liability has increased by 900 million. Compared to other months, less loans were taken in October, as compared to the better principal and interest payments, less loans were taken.
Twenty three trillion fifty billion debt
The total public debt of the country has exceeded 23 trillion 57 billion with the debt of 1 trillion 13 billion added in October. Along with this, compared to the gross domestic product, Nepal’s public debt has reached about 50 percent.
Out of the total public debt, the internal debt is 11 trillion 83 billion 57 billion rupees, while the external debt has reached 11 trillion 73 billion 49 billion rupees.
By the end of last June, there was a debt of about 23 billion rupees, but due to the payments made by the government in the last four months, only 36 billion rupees were added to the total debt at that time.
The government raises domestic debt by issuing various bonds through Nepal Rastra Bank. Similarly, it takes external loans from multilateral and bilateral partners such as the World Bank and the Asian Development Bank
The average rate of interest on internal loans is currently 6.5 percent, while the average interest rate on external loans is 1.5 percent.
As the revenue cannot increase in proportion to the increasing burden on public expenditure, the debt liability of the country is also increasing. In the current financial year alone, the country has set a target of raising four trillion 52 billion rupees as a source of budget.