Public borrowing in Nepal hits Rs 44,892 per head

Kathmandu / Aug 23: Per capita debt of Nepal has reached Rs 44,892 as direct consequences of a massive increase in government borrowing triggered by the slow growth in revenue collection, increase in development works and unproductive government spending.

As of last mid-July, the total outstanding debt of the federal government stood at Rs 134.67 billion, according to the record maintained by the Ministry of Finance. The amount includes Rs 733 billion foreign loan.

According to the ministry, the share of external loans in the country’s public borrowing has been escalating, with a reduction in grant by the foreign donors. Nepal received a total foreign assistance of Rs 304.70 billion in 2019/20, which was 40.5% more than the amount in the previous fiscal year. Of the amount, 94% was received in loan while the grant amount stood at meagre 6%.

The record with the ministry also shows that the country realized foreign assistance worth Rs 216.86 billion in the fiscal year 2018/19. Of the amount, foreign loan was Rs 195.50 billion, which made up 90 %.