Nepal, July 18 -- Although the size of the national budget has been increasing, the government's debt burden is also rising due to lower-than-expected revenue collection. In the fiscal year 2024/25, Nepal's public debt increased by Rs 231.54 billion. This rise is mainly due to the government's reliance on loans to fund development projects.

By the end of FY 2023/24, Nepal's total public debt had reached Rs 2.43 trillion. This amount rose to Rs 2.66 trillion by the end of FY 2024/25. With limited capacity to cover regular expenses, the government has continued to take both internal and external loans for development and other expenditures. The failure to boost revenue collection has pushed the government to rely on such borrowings to prep...