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Nepal online patrika , kathmandu | The...

Economists : Government weakness burdened country with internal debt

Nepal NewsEconomists : Government weakness burdened country with internal debt
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Nepal online patrika , kathmandu | The weakness of the government has burdened the country with internal debt, as stated by economists. Speaking at a program organized by the Nepal Management Association in Lalitpur on Friday, economists highlighted the following:

They pointed out that the country is facing problems due to the government’s reliance on internal loans and the payment of foreign loans at the dollar exchange rate. Economists mentioned that the government has been taking internal loans for convenience. They also highlighted the situation where the government has been unable to attract foreign investment into the country, leading to the operation of major projects using internal loans. They claim that the government has been unable to reduce internal loans despite the potential to attract significant foreign investment.

They mentioned that currently, the Finance Minister cannot expand the scope of revenue, nor can he ignore fluctuations in tax rates, despite the pressure from lawmakers to include all proposed programs and increase the size of the budget. Economist Keshav Acharya attributed the pressure on internal loans to some weaknesses in the government. He mentioned that even though the government could reclaim the amount after reviewing the plans made for foreign loans, it has been unable to do so. He also noted that although there is still about 50 billion rupees equivalent to be recovered, the government has not mentioned taking it.

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Former Finance Minister Dr. Yubaraj Khatiwada, speaking at the program, stated that the government needs to fulfill the country’s needs by taking internal loans if it cannot attract foreign investment. He mentioned that if foreign investment cannot be attracted to major projects, the government resorts to internal loans for their operation.

He mentioned that 30 percent of revenue collection goes to the revenue debt service. He stated that in the current budget, although the Finance Minister cannot increase tax rates in revenue, cannot expand the scope of taxation to many people, cannot take foreign and internal loans, despite the pressure from the parliamentarians to make the budget bigger by keeping all the points raised. However, he mentioned that it is not possible to do so.

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