Finance Minister Barshman Pun has said that internal and external loans are going to be taken to increase investment in production and employment sectors. He clarified that since the government's priority is to increase domestic production and create jobs, they are going to take loans to manage resources for that.

In response to a question raised on Tuesday during the theoretical discussion on the National Debt Raising Bill, 2081 in the House of Representatives, Minister Pun said that the trend of taking loans and spending in unproductive areas will be discouraged. Minister Pun said that he wanted to increase the development expenditure by taking loans.

'Next year's proposed current expenditure is also low, capital expenditure is high . We have also increased the amount sent to the provincial and local levels in the coming year compared to the current year,' Minister Pun said, 'It is relevant to say that the government will increase the capital i.e. development expenditure by taking loans rather than taking out loans. The amount of debt has been increasing in the last decade of the country. A decade ago, the debt was below 25 percent, now we are at a ratio of 42 percent . Next year, we are reducing it by 2 percent to 40 percent of the GDP . It is the government's priority to invest internal and external debt in the most productive and job-generating sectors.

Minister Pun also said that the government will proceed with restraint in raising debt. ``The target of taking domestic debt of 330 billion has been set. 90 billion is different from last year's 220 billion . Past debts have been created as a liability to be paid by the current government. In the coming year, the government has 160 billion new debt obligations or loans and debt payments have increased . It is sought to increase the domestic debt by 90 billion rupees. Looking at the calculation, after saying 160 billion to be paid, we tried to reduce it by 16 billion," said Minister Pun. 2.5 percent capital expenditure has increased compared to the current year compared to what the government borrows and spends on. It is less than the average expenditure of the current financial year for the next financial year.' 

Finance Minister Pun said that although the amount of debt has increased during the reconstruction after the earthquake, the economic growth is still going on. He said, 'The government is careful not to allow the private sector to get loans while taking internal loans, the budget has made it clear about the new possibilities of loans. The amount of loans increased during the reconstruction after the earthquake, but the loans helped the economic growth of seven percent continuously.' 

Participating in the theoretical discussion on the bill, the parliamentarians requested that the debt raised by the government should be spent in the right place . MP Prakasharan Mahat said that if the loan cannot be spent on concrete and productive work, it will cause problems if the investment is not used.