Kathmandu22 minutes ago
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Nepal Prime Minister KP Sharma Oli. (File photo)
Nepal’s economy has collapsed due to the financial assistance of US President Donald Trump. The government is unable to meet existing expenses, due to which the government has to take loans from the people of the country. Public debt on Nepal is increasing rapidly. Now this burden has doubled. In the first 7 months of the current financial year, public debt has increased by about 2 lakh crore rupees.
According to the debt management office, the public debt in July last year was Rs 24.034 lakh crore, which increased to Rs 26.011 lakh crore by February. Government debt in Nepal is increased to 45.77% of the country’s GDP. Until a decade ago, this figure was 22% of GDP. At the same time, foreign debt in total debt is 50.87%, domestic debt is 49.13%.
95 billion USAID closed, education and health projects affected Health, education and agriculture have been affected by the US agency USAID’s postponement of 95 billion rupees programs. The Millennium Challenge Corporation (MCC) project has also stopped after the closure of US cooperation.
This year the government is implementing a budget of Rs 18.063 lakh crore, but due to lack of resources, the budget has been cut by about ten percent. Last week, the government issued a loan of Rs 3.5 billion through civil savings bonds.
Nepal is one of the poorest countries in the world. Many projects have been closed here due to stopping American help.
Loan is not properly utilized, the situation worsens
The government has targeted to raise public loans of 5 trillion 47 billion forms એ એ in the current financial year, but has allocated only 4 trillions of Rs 2 billion for repayment. Economists believe that government loan in the country has reached the level of warning.
Good governance specialist Dr. Thakur Prasad Bhatt said that an increase in public debt could threaten Nepal’s economy. The loan is not being used effectively in the right areas, causing problems.
Commission formed for economic reform suggestion, but not benefiting
The status of the country’s economy has become a big challenge for KP Sharma Oli’s government. To improve the deteriorating economic situation, the government has formed an Economic Reform Suggestion Commission, but there have been no indications of improvement.
The government is not able to meet its goals due to reduction in revenue collection and dim economic activities. In the first six months of the current financial year, the government collected about 1.5 trillion less than the target. During this period, the expenditure was about 93 billion more than income.