November 2: The government repaid almost Rs 1 billion of public debt in the last fiscal year (FY 2020/21). During the review period, the government paid a total of Rs 95.12 billion, including principal and interest.

Altogether 63.33 percent or Rs 60.16 billion of the total payment stands for the principal amount repaid by the government, which includes 38.84 percent or Rs 36.90 billion internal loan and 24.49 percent or Rs 23.26 billion foreign loan.

The remaining 36.45 percent or Rs. 34.63 billion was paid by the government as interest. Out of this, an interest on internal loan of 29.95 percent or Rs 28.46 billion and foreign loan of 6.5 percent or Rs 6 billion 173.5 million was paid by the government.

Similarly, the Annual Report on Debt Obligations of the Government of Nepal released on Thursday shows that a commitment charge of 0.1 percent or Rs 101 million and the central bank’s commission of 0.11 percent or Rs 174 million has also been paid.

According to latest data, the ratio of public debt to gross domestic product (GDP) exceeds 40 percent. In the previous fiscal year, the ratio was 38.5 percent. As of mid-July last year, Nepal's total debt liability stood at Rs 1.737 trillion.

According to the public report based on Nepal's GDP size of Rs 42.66 billion, public debt has reached 40.72 percent. At present, out of the total debt liabilities of the government, domestic debt is Rs 802.94 billion, and foreign debt is Rs 934.14 billion. The report has shown that Nepal's public debt has increased by Rs 303.68 billion in the last fiscal year alone.

Foreign debt liability increased by 15.88 percent in 2020/21 as compared to FY 2019/20, according to the Public Debt Management Office.