•      Mon Apr 22 2024
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Rs 550 billion needed for repayment of public debt



Ministry of Finance Nepal (file)

Kathmandu, April 2: The government is struggling to arrange budgetary resources with the principal-interest liability on public debt for the upcoming fiscal year 2081/82 BS reaching around Rs 550 billion.

The National Resource Estimation Committee headed by the National Planning Commission Vice-Chair has already sent ceiling of the next fiscal year’s budget to the government.

The committee recommended bringing the national budget within the limit of Rs 1800 billion for the next fiscal year.

According to the given ceiling, budget for the next fiscal year will have to be brought within the limit of Rs 1,139.77 billion for recurrent expenses, Rs 305 billion for capital and Rs 537.23 billion for financial management.

The budget which goes under the heading of financial management is mainly spent on the repayment of public debt and liabilities.

In today’s meeting of the Development, Economic Affairs and Good Governance Committee under the National Assembly, NPC Vice-Chair Dr Min Bahadur Shrestha said there was a problem due to lack of adequate resource assurance with low revenue collection and increase in the principal and interest payment liability of public loans.

“Some ministries have received less budget ceiling than the current fiscal year’s budget. Although the size of the overall budget seems to be higher, the debt liability is more in the coming year. About Rs 106 billion has been added for next year compared to the current fiscal year”, Shrestha said. #Nepal