Kathmandu – The Government of Nepal has passed a new Act related to raising national debt to implement the budget for the fiscal year 2082/83 (2025/26). The Federal Parliament has approved the bill, which grants the government authority to borrow funds on behalf of the nation. According to the Ministry of Finance, the Act will be effective from Shrawan 1, 2082 B.S. (mid-July 2025).

Under this Act, the Government of Nepal is permitted to raise up to NPR 362 billion (approximately USD 2.7 billion) in national debt by the end of the fiscal year. This borrowing limit excludes overdraft amounts allowed under existing laws.

Additionally, the law authorizes the Nepal Rastra Bank (NRB) to convert any outstanding overdraft balances for the current fiscal year into treasury bills, if necessary.

This legislation aims to enhance transparency and efficiency in the nation’s public financial management.