Government’s Outstanding Public Debt Surpasses Rs 2858 Billion

The government's outstanding public debt has exceeded Rs 2,858 billion. According to a report on public debt published by the Public Debt Management Office.

As of mid-February, the total public debt liability has reached Rs 2,858.97 billion, the Public Debt Management Office stated.

At the beginning of the current fiscal year, the total public debt stood at Rs 2,674.04 billion. The debt liability increased by an additional Rs 184.93 billion during the review period. The Office stated that this amount represents 46.81 percent of the Gross Domestic Product (GDP).

Of the total outstanding debt, the internal debt liability stands at Rs 1,349.13 billion, while the external debt liability is Rs 1,509.84 billion. As of mid-January, the share of foreign debt in the total public debt was 52.81 percent, while the share of internal debt was 47.19 percent.

The government had set a target of mobilizing Rs 595 billion in public debt for the current fiscal year. By mid-February, the government secured loans of Rs 255.48 billion, achieving 42.89 percent of the annual target.

On the domestic front, the government aimed to raise Rs 362 billion. So far, the government has raised 60.13 percent of this target—amounting to Rs 217.66 billion, leaving a balance of Rs 144.33 billion yet to be procured.

In terms of external debt, the target is to raise Rs 233.66 billion. Till date, only 16.18 percent of this annual target, equivalent to Rs 37.81 billion, has been received. A significant sum of Rs 195.84 billion remains to be secured.

Meanwhile, the government had allocated Rs 411.01 billion for the payment of principal and interest on public debt this year. As of mid-February, the government has paid Rs 203.65 billion, which is 49.55 percent of the total allocated budget. Based on the GDP, the total debt servicing expenditure during this period stood at 3.33 percent.

The government's total outstanding debt in the corresponding period of last fiscal year stood at Rs 2611 billion, accounting for 45.77% of GDP. -- With inputs from RSS