Credit will be spent in productive sector: Finance Minister Pun

Finance Minister Barshman Pun has said that domestic or foreign loans will be spent in the productive sector, including job creation.
Responding to the queries raised during the discussion on the Bill to raise National Debt, 2081, he said that even though the amount of debt has increased during the post-quake reconstruction it helped the 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 a loan that the country cannot afford.

Dr Swarnim Wagle urged to carry 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 the debt it had taken without spending 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 production.

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 the parliament after Finance Minister Barshaman 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 on the bill for a decision.