KATHMANDU: Finance Minister Swarnim Wagle has stated that there is no alternative to mobilizing public debt alongside revenue collection to run the state.

Responding to queries raised in the House of Representatives today, Wagle clarified that utilizing public debt is essential for state operation, revealing that the government aims to mobilize Rs 247 billion in foreign loans and Rs 410 billion in internal debt for the upcoming fiscal year.

He noted that since Rs 246 billion will be spent on the principal and interest repayment of internal debt during this period, the net internal mobilization will stand at only Rs 164 billion.

He emphasized that these internal loans have been strategically allocated to state-prioritized projects designed to stimulate and revitalize economic activity.

Assuring lawmakers that public debt has not increased when compared to the overall size of the economy, the Finance Minister highlighted that sectoral budgets and programs have been allocated with specific priority given to regions lagging behind in economic, social, and human development, such as the Karnali, Madhesh, and Sudurpashchim provinces.

Additionally, he informed parliament that the nutrition allowance for Dalit children has been doubled in the budget for the upcoming fiscal year.

To address long-standing issues with budget execution, Wagle explained that amendments have been made to the Appropriation Act, 2026 and the Economic Procedures and Financial Accountability Rules, 2020, which now delegate authority directly to line ministries to handle their own capital budget transfers.

He expressed confidence that capital expenditure will increase moving forward due to these simplified procedures, amendments to the Public Procurement Act and Regulations, and the ensured job stability of project chiefs and key human resources.

He concluded by stating that the Ministry of Finance will actively facilitate relevant ministries and agencies to accelerate capital spending