While the Nepali Government has already been reeling under severe implications of the ongoing coronavirus pandemic, the burgeoning debt burden is further worsening the situation.<\/p>\n
According to the Ministry of Finance, the country’s per capita debt has reached NPR 45,753 with an addition of a loan liability of NPR 861 per head during mid-July and mid-August.<\/p>\n
As of mid-August, the outstanding debt of the Nepali Government reached NPR 1.37 trillion. Of the total debt, the government received NPR 759.38 billion (55% of the total debt) through foreign loans and NPR 613.21 billion through domestic loans.<\/p>\n
According to the Finance Ministry, in the first month of the current FY 2020\/21, the government received foreign loans worth NPR 2.48 billion.<\/p>\n
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However, there has been a drastic reduction in grants by foreign donors, escalating the share of foreign loans in Nepal\u2019s public borrowing.<\/p>\n
Of the total foreign assistance commitment worth NPR 59.94 billion in the first month of the current fiscal, the government received 98.3% of the amount through loans.<\/p>\n
Also Read: Live Nepali Currency Exchange Rates Today<\/a><\/strong><\/p>\n Meanwhile, the government has paid NPR 1.19 billion in interest for the said loans. Of the amount, over NPR 600 million was paid for foreign loans.<\/p>\n With the closed business activities, a stalled economy, and crippled revenue collection amid the pandemic, the Nepali Government is increasingly relying on foreign and domestic loans to address its financial liabilities.<\/p>\n The inability to check the unproductive government spending in unproductive sectors is considered the main reason for the soaring public borrowing.<\/p>\n Stay Tuned to NepaliSansar<\/a> for Latest Financial News<\/a>!<\/strong><\/p>\n More News:<\/strong><\/p>\n While the Nepali Government has already been reeling under severe implications of the ongoing coronavirus pandemic,…<\/span><\/p>\n
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