Finance Minister Dr. Swarnim Wagle stated, “Mobilizing public debt beyond revenue is an imperative option for running the state.” He disclosed that in the upcoming fiscal year, NPR 2.47 trillion in foreign loans and NPR 4.10 trillion in domestic loans will be mobilized. The government has allocated NPR 4.7 billion for agricultural sector development and NPR 3.2 billion for the purchase of chemical fertilizers. Kathmandu, 4 Asar — Responding to questions raised during the budget discussion in the House of Representatives, Finance Minister Dr. Swarnim Wagle emphasized the necessity of taking on debt to sustain state operations. Addressing concerns about the rising public debt burden, he said, ‘Beyond revenue, there is no alternative but to mobilize public debt for state operation.’ He informed that NPR 2.47 trillion in foreign loans and NPR 4.10 trillion in domestic loans will be mobilized in the next fiscal year. During this period, NPR 2.46 trillion will be spent on principal and interest payments of domestic debt, and an additional NPR 1.64 trillion in domestic loans will be mobilized.
Minister Wagle explained that domestic loans are being allocated to priority projects and sectors to stimulate economic activities. He also claimed that public debt has not increased compared to the size of the economy in recent years. The government is committed to curbing the tendency to accumulate unspent capital expenditures, which remain extremely low. He informed that amendments were made to the Appropriation Act 2082, the Financial Procedures, and the Financial Responsibility Regulations 2077, granting line ministries the authority to reallocate funds for capital expenditure themselves. The minister expressed a commitment to ensuring the stability of personnel, including project heads, and pledged that the Ministry of Finance will facilitate related ministries and entities to increase capital expenditure.
