Nepal’s total debt soared by 19.1 percent in the first six months of the current fiscal year to 32 percent of the gross domestic product (GDP), as internal borrowing surged and Nepali currency weakened vis-a-vis special drawing rights (SDR), a unit of money created by the International Monetary Fund.
The government’s total debt stood at Rs831 billionin mid-January, which is 32 percent of the GDP, according to the latest report of the Financial Comptroller General Office (FCGO). Nepal’s total debt stood at Rs697.7 billion when the fiscal year began in mid-July.
One of the reasons for sharp hike in total debt is jump in internal borrowing in the first six months of the current fiscal year.
Nepal’s domestic debt soared by 39 percent to Rs394.5 billion in the first half of this fiscal year.