Debt collection suspended as govt savings top Rs262b

- RUPAK D SHARMA, Kathmandu

May 17, 2017-

The government has suspended domestic debt collection for the time being as its savings soared to a startling Rs262 billion largely because of inability to expedite spending, especially capital spending.

The government, at the start of the fiscal year, had planned to raise Rs111 billion in debt from the domestic market to cover budget deficit and fund development works. But so far it has only raised Rs58.3 billion in debt from the domestic market by issuing treasury bills, and development, citizens saving and foreign employment saving bonds.

“We have decided to further slow down the process of domestic debt collection, as treasury surplus has soared [to Rs262 billion],” Laxman Aryal, head of the Economic Policy Analysis Division at the Ministry of Finance, said. “We will, however, ramp up issuance of debt instruments in the last month of the fiscal year [mid-June and mid-July] and fulfil our promise of raising Rs111 billion in domestic debt.”