KATHMANDU

The government is preparing to borrow 80 billion rupees in the first quarter of the current fiscal year 2080–81. Previously, the government had planned to borrow 55 billion rupees in the first quarter, but it has now revised it to 80 billion rupees. So far, the Nepal Rastra Bank has borrowed 64 billion rupees in internal loans, which is in line with the government’s target.

According to Ministry of Finance sources, the target for internal borrowing has been revised after pressure on revenue in the first quarter of the current fiscal year. The ministry sources claim that there is pressure to borrow 80 billion rupees in the first quarter. Previously, the government had borrowed internal loans in the first quarter of the previous year as well.

However, the officials of the Ministry of Finance themselves say that the target set by the government for internal borrowing is ambitious. In the budget for the current fiscal year, the government has mentioned the need to raise 1793.83 billion rupees in revenue, including 240 billion rupees for management under internal loans. Despite pressure on revenue collection, the government is still in need of a large loan in the first quarter for expenditure management.

The government had planned to take a domestic loan of 55 billion rupees in the second quarter of the current fiscal year. However, due to the difficult situation of expenditure, the government has decided to take a loan of 25 billion rupees in the second quarter as per the internal loan mentioned. Along with this, the government will now take only 30 billion rupees in the second quarter.