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According to the 2021 Auditor General’s Report, the government’s total outstanding public debts as on December 31, 2021, were estimated to be worth Le 31,631 billion, or 66% of GDP.
According to the study, the public debt was made up of Le 8,811 billion in domestic debt and Le 22,820 billion in foreign debt.
The paper noted that the Le8,811 billion total domestic debt at the end of the fiscal year 2021 would be made up of Le7,196 billion in short-term securities, such as treasury bills, and Le1,597 billion in long-term securities, such as government bonds.
Public debt is a significant government liability and a serious sustainability issue for the government as it necessitates thorough, accurate, and timely records for good management, according to the 2021 Auditor General’s report. According to the report, external creditors were contacted for confirmation and schedules outlining the movement of specific debts during the year were obtained as part of the audit procedures to verify the completeness and accuracy of debt recorded at the public accounts.
The study stated that a total account of Le19,09 trillion, or 91% of the external debts, was certified by a third party, and that an external debt of Le20,00 trillion was disclosed in the general-purpose financial statements. The audit reveals that Le1.9 trillion, or 9% of the total external debt, was not acknowledged by external creditors, and it also reveals that the unconfirmed balance debts date from as far back as 1983 to 2017.
