Government borrows Rs 61 billion in two months
Summary
Nepal’s public debt reached Rs 2.97305 trillion by mid-September 2026, with the government borrowing Rs 61.05 billion in the first two months of the fiscal year while spending Rs 85.01 billion on debt servicing. Officials and experts warned that rising repayments and weak project selection could strain public resources and deepen debt risks.
Key Points
- Nepal’s public debt stood at Rs 2.97305 trillion, or 45.05 percent of GDP, as of September 16, 2026.
- The government borrowed Rs 61.05 billion in the first two months of fiscal year 2026/27, while repaying Rs 70.13 billion in principal and Rs 14.87 billion in interest.
- Debt servicing spending of Rs 85.0106 billion far exceeded capital expenditure of Rs 7.66 billion during the period.
- Experts and advisory reports warned that weak investment choices and rising repayment burdens could push Nepal toward a debt trap.
