NNRFC recommends govt to mobilize internal debt not exceeding 5.5pc of GDP in 2021-22

KATHMANDU: The National Natural Resources and Finance Commission (NNRFC) has set the limit of internal debt for the federal, provincial and the local government for 2078-79 (2021-22) fiscal year.

The Commission has recommended the government to mobilize internal debt equivalent to maximum 5.5 percent of the projected gross domestic product (GDP) for the next fiscal year. The commission has recommended that the government can raise a maximum of Rs 234 billion in internal debt in the upcoming fiscal year.

The Central Bureau of Statistics (CBS) has recently projected that country’s GDP would grow at 3.98 percent to Rs 4.26 trillion in 2078-79.

Last year too, the Commission had recommended the government to mobilize internal debt within the limit of 5.5 percent of GDP.

Similarly, the Commission has also recommended provincial governments to raise internal debt in the upcoming fiscal year without exceeding 12 percent of the total revenue that the provincial government gets from revenue distributed/ shared from the federal government and and the total revenue that the provincial governments collect from its own internal sources.

Likewise, the Commission has recommended local governments to raise internal debt not exceeding 12 percent of the revenue shared by the federal government and provincial government and the revenue received from its own internal sources.