The federal government has received Rs 99.2bn in external loans during the first 11 months of the current fiscal year, which is less than half of its target of Rs 217bn. According to a report from the Public Debt Management Office, the foreign loans received as of mid-June amount to just 45.72 percent of the target. In contrast, internal debt mobilization is on track to meet its goal, with 95.45 percent (around Rs 315bn) of the Rs 330bn target already achieved.
Most of the foreign loans have been categorized under capital expenditure, serving as a source for funding development projects. However, the slowdown in development activities has hindered the inflow of these external loans, according to the office. “Donor agencies largely provide financial assistance to Nepal in the form of project-based loans rather than direct budgetary support. As a result, the delayed or poor implementation of projects significantly impacts the receipt of funds. Overall, weak development expenditure has led to a decline in external loan inflows.”
According to the Office of the Auditor General, as of Saturday evening, the annual capital expenditure has only reached about 42 percent of its target.
Meanwhile, the Public Debt Management Office stated that the total debt that the government has yet to repay is Rs 2,654bn. At the beginning of the current fiscal year, the total public debt was
Rs 2434.9bn, and by the end of last May, an additional Rs 220.58bn of government debt was added. As of the end of last May, the total public debt is 43.47 percent of the country’s total gross domestic product. Furthermore, the share of foreign debt in the remaining debt that the government has to repay is 52 percent, while the share of domestic debt is 47.94 percent.
According to the data as of mid-June the internal debt is Rs 1272.53bn and the external debt is
Rs 1382.12bn. The government had set a target to mobilize Rs. 5.47bn in public debt for the current fiscal year. As of the end of last mid-June, Rs 414bn has been collected in debt. As of June 14, the total public debt is 43.47 percent of the country’s total gross domestic product. The government has yet to receive a total loan of 52 percent in foreign debt, while the share of domestic debt stands at 47.94 percent.
The government had set a target to mobilize public debt of Rs 547bn through active means. As of mid-June, the government has raised a loan of Rs 14.19bn. The total public debt collection as a percentage of the annual target is 75.72 percent. For the payment of the principal and interest on government debt, Rs 329.6bn has been spent in the last 11 months, it is stated.
