Kathmandu. In the upcoming fiscal year 2082/83, the federal government will be able to borrow domestic loans not exceeding 5 percent of the GDP. The National Natural Resources and Finance Commission has made this recommendation while determining the domestic loans that the federal, provincial and local governments can borrow for the fiscal year 2082/083.
The gross domestic product (GDP) released by the National Statistics Office has reached 617 billion in the current year. According to which, the Ministry of Finance will be able to borrow domestic loans up to 388 billion in the budget for the upcoming fiscal year 2082/083. The government is borrowing domestic loans at high interest rates as it is unable to mobilize domestic loans at low interest rates. So far, the government’s internal and external debt has exceeded 2.6 trillion.
The recommendation made by the commission states that – ‘After analyzing Nepal’s macroeconomic situation, revenue and expenditure estimates, and market ease, the Government of Nepal may raise internal loans for projects that are deemed appropriate in terms of internal rate of return or net present value based on national policies/plans for the fiscal year 2082/83, as well as for projects of national pride, transformational projects, and projects that have received first priority under the medium-term expenditure framework, based on the cost-benefit analysis, not exceeding five percent of the estimated gross domestic product for the fiscal year 2082/83.’
The provincial governments, once the structural and procedural arrangements for internal debt mobilization are completed, may not exceed 12 percent of the sum of the revenue sharing amount received from the Government of Nepal and the revenue amount received from the provincial government’s own internal sources in the fiscal year 2082/083. A limit has been set to allow such loans. The Commission has recommended that internal loans be raised with the approval of the Government of Nepal for the implementation of projects.
Similarly, a limit has been set for local governments. Local governments, once the structure and procedural arrangements for internal loan mobilization are complete, will be able to raise internal loans for the implementation of projects based on national, provincial and local policies and plans, not exceeding 12 percent of the sum of the revenue sharing amount received from the Government of Nepal and the provincial governments in the fiscal year 2082/83 and the revenue amount received from the local government’s own internal sources.
प्रतिक्रिया दिनुहोस्