Government account negative, raising debt by the government

The government account is negative. The government account has now become negative by 8 billion two crore 91 lakh rupees. Since the Ministry of Finance has disbursed 26.32 billion 2.8 million rupees since Sunday, the government account looks negative by almost 8 billion. During the period, the government has also earned eight billion 41 crore 67 million rupees. As the expenditure is increasing more than the income, the government account is negative.

According to the office of the Comptroller General, when the festival is approaching, more money has to be released due to the need to pay salaries and allowances for employees, to pay for development and construction works, etc. Which has put pressure on government accounts. This is the reason why the government has started raising domestic debt on a daily basis this week. When the government account becomes negative and cannot meet the expenses, the government will accelerate the collection of internal debt. For the purpose of raising internal debt, Nepal Rastra Bank has again issued development bonds worth 10 billion rupees.

Rastra Bank today (Thursday) has issued development bonds worth 10 billion rupees for eight years. A bond sale named ‘Development Bond 2088 E (8 years)’ has been issued for sale till 3 pm today. This bond will be issued by the Central Bank on October 19, with an 8-year period of 10 billion rupees. This bond will be sold tomorrow (October 18th) through Bolakbol.

The interest rate of this bond will also be negotiated. According to Rastra Bank, the interest payment will be half-yearly and interest tax will be charged on the accrued interest. The bond will mature on October 19, 2088. Loans can be taken and given as collateral for this bond. Interested buyers can participate competitively or non-competitively in Bolakbol. 85 and 15 percent of the issued amount respectively to competitive and non-competitive companies i.e. Rs. 8.5 billion and Rs. 1.5 billion has been allocated.

Interested buyers can purchase at least 50,000 and more than the total issued amount without exceeding the limit of 50,000 rupees, subject to dividing by 50,000 rupees. According to Rashtra Bank, individuals and organizations are allowed to participate as competitive or non-competitive bidders under the bidding process for the purchase of bonds.