Government Claims on NRB Drop 40.9% Amid Reduced Treasury Bill Holdings

Nepal Rastra Bank’s (NRB) Central Bank Survey for mid-August 2025 shows a sharp decline in government claims on the central bank, falling by 40.9 percent (Rs. 8.35 billion) compared to the same month last year. The total stood at just Rs. 12.04 billion, down from Rs. 20.3 billion in 2024.

The main reason behind this decline is the drastic fall in Treasury Bill holdings, which were completely phased out. In August 2024, the government had Rs. 38.2 billion worth of Treasury Bills, but in August 2025, this dropped to a symbolic Rs. 250 million. Similarly, holdings of development bonds fell sharply by 46.7 percent, indicating the government’s reduced reliance on short-term borrowing from the central bank.

Analysts suggest this reflects a shift in fiscal and monetary strategy, as the government increasingly turns towards commercial banks and market-based borrowing instruments to finance its deficit. While this reduces direct monetary financing by NRB—helping curb inflationary risks—it also highlights the government’s rising dependence on the private financial sector.