Government debt soars to Rs64 trillion

The federal government debt has surged to a staggering Rs64 trillion by the end of August 2023, reflecting an alarming increase of over 29% in just one year. A substantial Rs6.7 trillion increase in external debt was primarily attributed to currency depreciation. As of August 2022, external debt stood at Rs17.4 trillion, excluding the International Monetary Fund (IMF)’s liabilities. Of the total public debt, external debt accounted for 40.9%, while short-term debt stood at 13.7%, according to the World Bank. The federal government’s total domestic debt surged to Rs39.7 trillion, marking an increase of Rs7.6 trillion or 24% within the past year.