KATHMANDU: The government has announced plans to raise NPR 17.23 billion in internal loans through Treasury bills, according to the Public Debt Management Office. Of this amount, NPR 12.23 billion will be used to renew maturing Treasury bills, while NPR 5 billion will be raised through new issuances.
A notice from the office stated that bidding for the Treasury bills will be open until 3 PM on Monday, with the issuance scheduled for Tuesday. This initiative is part of the government’s ongoing efforts to mobilize internal debt through various instruments such as Treasury bills, development bonds, citizen savings bonds, and foreign bonds.
In the most recent auction, the weighted average interest rate on Treasury bills was 2.98%. Banks and financial institutions submitted bids with interest rates ranging from 2.45% to 3%.
For the current fiscal year, the government has allocated NPR 1.86 trillion in expenditure. Of this, 61.31% (NPR 1.14 trillion) is earmarked for recurrent expenses, 18.94% (NPR 352.35 billion) for capital expenditure, and 19.74% (NPR 367.28 billion) for financial management. This year’s budget represents a 6.2% increase compared to the previous year’s allocation and is 21.56% higher than the revised estimate.
To meet the projected expenditures, the government plans to generate NPR 1.26 trillion from revenue and secure NPR 52.33 billion in foreign grants. However, the remaining deficit of NPR 547.67 billion will be addressed through borrowing. The government intends to raise NPR 217.67 billion through foreign loans and NPR 330 billion through internal loans.
The use of Treasury bills highlights the government’s reliance on domestic financial markets to bridge fiscal gaps, while ensuring liquidity remains available for other economic activities.