The Government of Nepal spent a large portion of its budget this year simply to pay off public loans. In the first 11 months of the fiscal year 2081/82, nearly Rs. 329.6 billion went toward repaying principal and interest on public debt.
This spending accounts for 19.46% of the revised national budget, which stands at Rs. 1.692 trillion. It also makes up 5.4% of the country’s GDP, according to a report from the Public Debt Management Office.
Out of the Rs. 402.85 billion allocated for debt servicing for the full year, the government has already used 81.82% by the end of Jestha.
