Nepal's Public Debt Rises Sharply Without Corresponding Job Creation or Production Growth
Summary
Nepal’s public debt has risen more than four and a half times in the past decade, but it has not translated into meaningful job creation or production growth. The article warns that debt repayment pressure is crowding out development spending and calls for more productive use of borrowing.
Key Points
- Nepal’s public debt has grown rapidly over the past 10 years, reaching about Rs. 29.75 kharba and projected to rise further in the current fiscal year.
- Despite heavy borrowing, the article says debt-financed spending has delivered weak results in job creation, industrialization, and productivity growth.
- A large share of borrowing is being absorbed by debt repayment, unproductive projects, and delayed capital spending rather than high-return investments.
- The article calls for stronger project selection, accountability, and greater use of domestic skills and local materials in debt-funded projects.
