‘An increase in obligation to pay off the debts resulted in a decrease in capital expenditure’: Mahat

Kathmandu: Finance Minister Dr. Prakash Sharan Mahat has shown an increase in the obligation of paying off debt as a result of the decrease in capital expenditure. Minister Mahat shared the reason behind the decrease in capital expenditure while answering the question raised by the members of parliament.

Dr. Mahat said, ‘The obligation of paying off debt increased. This affected the capital expenditure. Many have raised their concerns about the decrease in capital expenses. This has a reason because the obligation of clearing the debt increased.’

He added, ‘ It was not possible to increase the GDP by 5 percent even after lengthening the internal loans. Also, we were on a lower ranking than the last year. We stayed such because if we had taken the internal loan, it would have affected the area for private sectors. We didn’t want that. We had targeted a 6 percent goal, which was not possible without the contribution from the private sector to run the economy.’

He said that he had reduced the budget by 2.34 percent for the ongoing fiscal year.