To repay debt, government turns to more debt; public debt hits 43.79% of GDP

The government has recently been found to be taking loans simply to repay existing loans. This is shown by the eighth report of the National Natural Resources and Fiscal Commission.

According to the report, the government has been increasingly mobilizing internal debt. But a large portion of it is being spent on repaying old debt.

Public debt has also been rising steadily. In fiscal year 2077/78, public debt stood at 40.72 percent of gross domestic product (GDP). By fiscal year 2081/82, it had risen to 43.79 percent.

The report has reignited debate over the state of government debt and its impact on the economy.