Commission directs spending internal debt on flagship, transformative projects

The government has raised more internal debt than recommended by the National Natural Resources and Fiscal Commission. The commission has flagged this in its annual report for fiscal year 2082/83.

According to the commission, the government raised internal debt of NPR 358.66 billion that year. This amount equals 5.43 percent of gross domestic product. The commission had recommended keeping debt within 5 percent of GDP.

This means debt mobilization exceeded the recommendation by 0.43 percentage points. The commission said that although provinces and local levels set internal debt targets in their budgets, implementation has been weak. The report also notes that some local levels borrowed outside their budgets.