Minister Poudel: Less foreign aid received in recent years

Kathmandu: Finance Minister Bishnu Prasad Poudel said the volume of foreign aid received by Nepal has declined.

Deputy Prime Minister and Finance Minister presenting the fiscal budget at the House of Representatives (HoR) on Thursday, said the Federal Reserve Fund received Rs 24.01 billion in foreign grants and Rs 113.27 billion in foreign loans, amounting to a total of Rs 137.28 billion in foreign aid.

Of the, loans accounted for 82.5 per cent and grants 17.5 per cent. The total foreign aid received during this period represented 2.4 per cent of the Gross Domestic Product (GDP).

As per the survey, by the end of Falgun (mid-March 2025) in the current fiscal year, Nepal had secured Rs 9.16 billion in foreign grants and Rs 65.74 billion in foreign loans, bringing the total foreign aid to Rs 74.63 billion. This marks a 13.8 percent decline compared to the same period in the previous fiscal year.

Despite the decrease in aid, public finance indicators have remained stable up to mid-March. A 12.6 percent increase in federal revenue mobilization has contributed to improvements in both the budget and fiscal deficits.

The survey also highlights that both the primary balance and revenue balance are in surplus. Additionally, there has been a notable rise in foreign aid commitments.

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