August 21, 2020 | Investopaper
Nepal’s development partners have provided only Rs 89 billion in foreign aid (grants and loans) last year. Finance Minister Yubaraj Khatiwada, while announcing last year’s budget, had set a target of bringing in Rs 356.82 billion in foreign aid through grants and loans. Out of this, the grant is Rs. 57.99 billion and the loan is Rs. 298.83 billion. However, foreign aid has fallen short of the target set by Finance Minister Khatiwada by Rs 267.82 billion. This is about 25 percent of the target.
The country’s public debt has reached Rs 1.346 trillion till last year. Of this, Rs 613 billion is domestic debt and Rs 733 billion is foreign debt. The debt had risen slightly last year from an average of 30 percent of gross domestic product (GDP) in the previous year.
The country received Rs 73.38 billion in grants in FY 2071/72 but only Rs 18.42 billion in FY 2076/77. This is 31 percent of the government’s target. Finance Minister Yubaraj Khatiwada had set a target of Rs 57.99 billion in last year’s budget. Similarly, the grant which was more than Rs. 30 billion in FY 2074/75 has now come down to less than Rs. 20 billion.
The government had targeted to bring in a total of Rs 478.34 billion in grants in the last six years. But in those years, only Rs. 189.84 billion has been received as grant. Only 39 percent of the target has been achieved.