Credit will be mobilised in productive sector: Finance Minister Pun

KATHMANDU, JUNE 25: Finance Minister Barshman Pun has stated that domestic or foreign loans will be mobilised in the productive sector, including job creation.

Responding to queries raised during the discussion on the Bill to Raise National Debt, 2081, he said that although the amount of debt has increased during the post-quake reconstruction, it has helped achieve economic growth of seven percent.

Earlier, participating in the discussion, parliamentarians requested that the debt raised by the government should be spent in a result-oriented manner. MP Dr. Prakasharan Mahat commented that if the loan cannot be spent on concrete and productive work, it will invite problems, while MP Rajendra Kumar KC urged the government not to take loans that the country cannot afford.

Dr. Swarnim Wagle urged carrying the burden of debt based on reality, and Pradeep Poudel said that the policy of taking loans even for current expenses is not right.

Similarly, MP Shyam Kumar Ghimire suggested adopting a policy of controlling revenue leakage and reducing expenses. Badri Prasad Pandey commented that it would be counterproductive for the nation to borrow again to pay off debt that had been taken without being spent on productive work.

Prem Suwal suggested that cottage and micro-industries and enterprises should be supported, while Rajendra Prasad Pandey was of the view that the burden of debt can be avoided if employment is increased by investing in sectors like tourism, agriculture, and education.

MP Nagina Yadav said that domestic debt should not exceed 5.5 percent of the gross domestic product.

Similarly, MPs Jeevan Pariyar, Udaya Shumsher Rana, Sanjay Kumar Gautam, and others stressed that the trend of taking loans and spending in unproductive sectors should be stopped.

HoR Endorses Bill to Raise National Debt

The House of Representatives (HoR) meeting later endorsed the Bill to Raise National Debt, 2081 BS. The bill was endorsed by a majority of members of parliament after Finance Minister Barshman Pun responded to the queries raised in today's theoretical discussion over the bill.

Deputy Speaker Indira Rana, who chaired the House session, had presented the proposal seeking consideration of the bill for a decision.