Government debt exceeded 25 trillion 28 billion, added 94 and a half billion in two months

Along with this, the outstanding public debt has reached 25 trillion 28 billion 62 billion rupees.

Outstanding public debt is 44.32 percent of gross domestic product (GDP). Out of this, domestic GDP is 21.66 percent and external is 22.66 percent. Out of the total outstanding public debt so far, internal accounts for 49 percent and external accounts for 51 percent. During that period, the internal debt is 12 trillion 36 billion and the external debt is 12 trillion 92 billion rupees. Looking at the current public debt owed by the government, now every Nepali has about 86,000 rupees. According to the National Census 078 published by the National Statistics Office, the total population of Nepal is 29.1 million 64 thousand 578. This figure is derived by dividing the outstanding public debt by this population as of last August. The National Statistics Office has predicted that GDP will reach 57 trillion 5 billion rupees in the last financial year. Economists say that there are signs that the ever-increasing public debt poses risks.

But Shivraj Adhikari, Vice Chairman of the National Planning Commission, says that since there is more liquidity in the financial system and the interest rates are also low, it is appropriate to collect the loans that are to be collected after a few months according to the schedule. "It has two advantages, more liquidity in the banks can be managed, and the cost to the government will be reduced due to the cheap interest," he said, "but more attention should be paid to the utilization of the collected loans." If that money is not invested in the productive sector, the result will not be good.'' Since public debt is taken as a source of deficit budget, it is difficult to say whether that amount was spent in the production or non-production sector. However, the actual economic growth has been around the estimated economic growth rate in recent times. This indicates that the economic activity has gradually improved, but this improvement is not enough," he added, adding, "The loans raised by the government should be invested in projects that have started to be completed but have not been completed due to lack of resources. If you invest in new projects, it will not be so effective. It has two advantages. One is that the construction of projects that have been stopped due to lack of budget will be completed. Therefore, he said, the funds raised through loans should be invested in projects that give returns.

Since the last financial year, allocations under the heading of financial management have exceeded the size of capital expenditure. They say that this is a product of continuous increase in internal and external debt. While the level of capital expenditure has decreased and the budget allocation for the financial system has increased, experts are of the opinion that the increased debt liability poses a threat of financial imbalance. The government has announced a budget of 17 trillion 51 billion 31 crores for the current financial year. Out of the total allocation, 11 trillion 41 billion 78 million (20 percent) has been allocated for current expenses, 3 trillion 2 billion 7 billion (17.25 percent) for capital and financial arrangements, 3 trillion 7 billion 45 million (17.55 percent). The budget allocated for financial management is more than the capital expenditure. This confirms that since the debt load of the state has been increasing in recent years, the government has given more priority to debt repayment than development.

In the last two months, government debt has been paid significantly. According to the office of the Comptroller General, 39.67 billion 2.2 million has been spent on financial arrangements in the last two months. Most of this amount is the principal payment of public debt. The government had spent 35 billion 31 crore 39 lakhs or 11.49 percent of the target on this topic till August 080. As in the last financial year, the government has not been able to receive foreign grants until July and August this year. "In the current fiscal year, a total of 5 trillion 47 billion rupees was set to raise public debt, an additional 1 trillion 4.5 billion rupees was received by the end of last August," the report said, "compared to the annual target, the total public debt collection is 19.02 percent, internal debt 27.27 percent and external debt is 6.48 percent.'' Especially after the 072 earthquake, Nepal took a big loan and some of the public loans were used in unproductive areas. It seems that the size of the capital expenditure is decreasing with the union as the budget has to be allocated to the local level and the state along with the salary and allowance obligations to the government. According to the report, 47 billion 41 crore 51 lakh rupees have been paid out of the 4 trillion 2 billion budget allocation in the current financial year for debt service (paying interest-interest). This is 11.84 percent based on annual budget allocation and 0.84 percent based on GDP.

Statistics show that the public debt base is increasing every year. According to this, the public debt of Nepal in 073/74 was equal to 6 trillion 97 billion 68 million. In 074/75, such debt reached 9 trillion 17 billion. Public debt reached 10 trillion 48 billion in 075/76, 14 trillion 33 billion in 076/77, 17 trillion 37 billion in 077/78, 20 trillion 13 billion in 078/79, 22 trillion 95 billion in 079/80. It is mentioned in the reports.