Questions about foreign debt and spending capacity were raised thirty years ago.

Not only is the foreign aid from donor countries and agencies receiving less than expected, but Nepal's spending capacity is also weak.

Not only now, in Nepal in the 1950s, the amount of grants had decreased and the debt had started to increase. Since the loans could not be spent, the amount given by the donor could not be utilized properly. Just as the condition of capital expenditure allocated through the annual budget seemed weak, the strategy for using foreign aid also seemed equally disappointing, and it still persists today.

On the one hand, the situation of relying on foreign aid to build the budget and on the other hand, the donor countries and agencies are unable to spend the amount they have committed has continued not only today, but since the 1930s. A striking example is that in 2031, the donor had committed 1.91 billion rupees. But the government was able to spend only 550 million. This issue was given as an example by linking it to the government's spending capacity until the 1950s.

Not only the issue of the use and expenditure of foreign aid, but also the issue of transparency was raised in the 1950s. That is why some organizations and researchers had made public the data on corruption in foreign aid. Until 2012, Nepal received only grants, not loans. But by 2043, about 25 percent of grants and the rest were all loan aid. In the 1960s, grants accounted for 71 percent. In 2048, only 20 percent of total foreign aid was granted. Even then, questions were raised about Nepal's spending capacity. The main issue was the transparency of where and how it was actually spent. Even after the changes in 2046, there was not much progress in this regard. 

According to a study conducted by Action Aid Nepal in 2053 on 'Foreign Aid in Nepal', the 'Cold War' and India-China tensions were considered the main reasons for the decrease in grants in Nepal during the Panchayat period. According to the study, the decrease in grants led to a situation of dependence on loans. At that time, the World Bank and the Asian Development Bank were seen as international donor institutions providing loans at low interest rates. According to the study, Japan was the largest loan and grant-giving country. The United Kingdom, Saudi Arabia, and Finland were known as lending countries. United Mission to Nepal was the largest non-governmental organization providing assistance in Nepal. At that time, Action Aid, Asia Foundation, and Kiir Danish were international aid organizations. Plant International, International Nepal Fellowship, Lutheran World Federation, Norwegian, British, and American Save and Children were there. According to the United Nations Development Program (UNDP), the World Bank's 'IDA' was the largest aid provider to Nepal from 2049 to 2053. 

According to the Action Aid Nepal report, the main reason for Nepal's dependence on foreign aid for development expenditure was the inability to increase domestic revenue. According to the report prepared by Chandra Prasad Bhattarai, the main reason for Nepal's dependence on foreign aid was the failure to select suitable projects. The report found that there was a lack of participation in foreign aid projects, a shortage of skilled professionals, and inappropriate working methods. The report mentioned that the government had not been able to properly use foreign loans to reduce poverty. 

Nepal was debt-free in the 1950s. It was completely self-sufficient in food. But by the end of 2052, Nepal was carrying a debt of Rs 121 billion. The report mentioned that foreign aid had increased corruption in Nepal. According to the Ministry of Finance, Nepal's public debt has now exceeded Rs 2.7 trillion. 

The news prepared based on a report made public almost 30 years ago focusing on the study of foreign loans, grants, and expenditure in Nepal was published by Kantipur Daily on 2053 Shrawan 32 under the title 'Foreign aid has increased corruption in Nepal'.