The country’s total public debt increased by over Nu 13bn in the first quarter of this year compared to the last three months of 2023. Speaking to the media during today’s Meet the Press, Finance Minister Lekey Dorji said that as of the 31st of March, total public debt stands at over Nu 290bn, the majority of which is for hydropower projects.
Total public debt is the amount of money the government owes to individuals, businesses, and other countries. It includes all borrowings the government makes to finance its operations and projects, such as bonds and loans.
An increase in both external and domestic debt led to the overall debt rising to Nu 293.09bn.
External debt increased from Nu 251.8bn to Nu 261.1bn between January and March. Similarly, domestic debt increased by about Nu 4bn to Nu 31.97bn in the same period.
The major portion of external debt, Nu 167.5bn is for the six hydropower projects of Punatsangchhu I and II, Dagachhu, Mangdechhu, Nikachhu, and Basochhu.
Speaking to the media, Finance Minister Lekey Dorji said that the government is working to expedite progress on hydropower projects whose detailed project reports are ready.
“The government is working on projects such as Kholongchhu, Chamkhar Chhu, Dorjilung, Sunkosh, Bunakha, and Wangchhu, keeping the command of His Majesty in mind. The finance ministry is also developing funding modalities for these projects.”
Meanwhile, debt excluding hydropower projects stands at Nu 93.62bn.
From the total non-hydro debt, Nu 75.3bn is for budgetary support loans, while corporate and central bank debts account for Nu 8.28bn and Nu 10bn, respectively.
Dechen Choden
Edited by Sherub Dorji
