KATHMANDU, July 25: The government is set to raise Rs 113 billion in domestic debt by mid-October as part of its internal borrowing plan for the first quarter of the current Fiscal Year (FY) 2025/26.
According to a schedule released by the Public Debt Management Office (PDMO), the government will issue a total of 11 development bonds, each worth Rs 10 billion, with maturities ranging from three to eleven years. In addition, it plans to raise Rs 2.5 billion through Citizen Saving Bonds with a five-year maturity period, and Rs 500 million via Foreign Employment Saving Bonds.
The government's plan to raise the debt comes amid mounting fiscal pressures driven by declining revenue and rising recurrent expenditures. In the second quarter (mid-October to mid-January), the government aims to borrow an additional Rs 85 billion internally — Rs 60 billion through development bonds and Rs 25 billion via treasury bills. The plan includes the issuance of five treasury bills of Rs 5 billion each, with maturities ranging from 28 days to one year, and six development bonds worth Rs 10 billion each, maturing in three to ten years.
Public debt exceeds Rs 2.434 trillion, increasing by over Rs 30...
From mid-January to mid-April 2026, the government plans to raise Rs 109 billion in internal debt. This includes Rs 56 billion through development bonds, Rs 50 billion through treasury bills, Rs 2.5 billion via Citizen Saving Bonds, and Rs 500 million through Foreign Employment Saving Bonds. For the final quarter of the fiscal year, the government plans to borrow another Rs 55 billion.
Of the total expenditure of Rs 1.964 trillion for FY 2025/26, the government plans to finance Rs 1.315 trillion through revenue collection. The remaining amount will be met through Rs 362 billion in domestic borrowing, Rs 233 billion in foreign loans, and Rs 53 billion in foreign grants. The government has allocated Rs 375.24 billion for interest payments and principal repayments on public debt.
By the end of FY 2024/25, Nepal’s total public debt had climbed to Rs 2.66 trillion, marking an increase of Rs 231 billion in just one year. With limited capacity to cover recurrent expenditure, the government has increasingly relied on both domestic and foreign loans to fund development and operational needs.
Former Finance Secretary Madhu Kumar Marasini warned of the economic consequences of rising debt. “The growing burden of interest and principal repayments has begun to affect public investment in development projects,” he said.
Meanwhile, the PDMO on Wednesday issued Development Bonds-2085 worth Rs 10 billion. The three-year maturity bonds will be sold through competitive bidding and can be traded in Nepal’s secondary market, according to the PDMO.
