First Business News Portal in English from Nepal
KATHMANDU: The country has received foreign assistance commitment worth Rs 90.54 billion in the first four months of the ongoing fiscal year.
As the government is finding it difficult to assure financial resources for the unfavorable circumstances created by the COVID-19 pandemic while the revenue collection is also low, the government is seeking foreign aid assistance increasingly to meet its financial liabilities.
Of the total foreign aid commitment in the first four months, more than 85 percent commitment is for loan while remaining is of grant.
As the government has announced fresh mid-term election on May, this will also add financial pressure to the government. Along with this, the government has also announced to provide free COVID-19 vaccination to the public which will add financial burden to the government.
“The government is under pressure to manage financial resources this year especially because large chunk of resources is being required to address the pandemic issue. Similarly, if the election is to be held, this will further worsen the financial state of the country. Thus, foreign aid is inevitable at such context,” informed an official at the Ministry of Finance (MoF).
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