Budgetary assistance increased

Kathmandu - Out of the amount under the foreign aid provided to the government in the last fiscal year, budgetary assistance has remarkably increased. Chief of the International Financial Assistance Division under the Finance Ministry, Shree Krishna Nepal, shared that the on-budget assistance was being increased while the off-budget assistance decreasing.

At an interaction organized by the Society of Economic Journalists Nepal (SEJON) here Wednesday, Nepal shared the information that the government received Rs 89 billion foreign assistance in the last fiscal year which however was Rs 34 billion in the previous year. The data showed that with the increase in budgetary assistance, off-budget or technical aid is decreasing. The government had received 210 million US dollar technical assistance in the fiscal year 2076/77 against 263 million US dollar in 2075/76.

"Owing to the lessening economic growth in the past years and the crisis posed by the COVID-19 pandemic, Nepal has currently the loan of 36 percent of its GDP. The emergency support was taken with quick decision of late. Four years back, the loan was around 30 percent of country's GDP." Nepal mentioned.

According to him, although there is no certain standard on taking loan, it is imperative to make wise use of loan. The government has the policy to mobilize the development aid to contribute to country's prosperity campaign. "Expense will be made based on priority and need. Economic reform, employment, and sustainability are focused," he stressed. He however claimed that Nepal's capacity to take loan and internal income are in right track.