September 3: The government, which raised internal debt since the beginning of the current fiscal year, has raised Rs 35.85 billion in internal debt within three weeks.

Last year, the government raised such loan only in October, but now it has been raising internal debt from July, saying that the interest will be expensive later. The government's target is to raise domestic debt of Rs 240 billion in this fiscal year.

Prior to this, the central bank had issued development bonds worth Rs 10 billion with maturity period of six years on August 28.

Banks, financial institutions, non-banking financial institutions, insurance companies, organized institutions and even ordinary citizens bought the development bonds.

Before that, development bonds worth Rs 10 billion each were issued on August 3 and August 13 and bonds worth Rs 5.84 billion on August 17.

Nepal Rastra Bank is again issuing bonds worth Rs 10 billion on September 11.

After that, it has scheduled to issue bonds worth Rs 10 billion each on October 2, November 3, November 29 and December 13.

The interest rate of the bonds issued by the central bank has been determined through negotiation. Interest is paid semi-annually. Provision has been made that loans can be taken/given by keeping these bonds as collateral. There is a provision that banks, financial institutions, non-banking financial institutions, insurance companies, organized institutions and Nepali citizens can purchase the bonds.

Looking at the situation of the current fiscal year, it seems that the income of the government has decreased compared to the previous year. As of September 1, the government has collected more than Rs 90.99 billion in taxes. The data of the Financial Comptroller General's Office show that the government collected taxes worth more than Rs 103.13 billion during this period last year.

By September 1 of the current fiscal year, the government has spent more than Rs 6819 billion. In the corresponding period last year, Rs  51.59 billion.

Although the government's income has decreased compared to last year, it seems that the expenditure has increased. However, the government has not stopped raising domestic debt.

Sources at the Ministry of Finance say that this process will continue. "We have the obligation to pay the public debt we have taken including a large amount of interest in the coming days," said a senior official of the ministry. The government of Nepal has been taking internal loans as a source to fund the inadequate finance for economic development.

As of September 1 in the current year, the government has spent more than Rs 32.83 billion under the heading of financial management.

This is the cost of interest paid on the public debt. Finance ministry officials say that since the price of the dollar has also increased compared to the previous year, it is affecting the payment of interest of foreign loans.