KATHMANDU: Finance Minister Dr. Swarnim Wagle has argued that there has been no change in the government’s public debt mobilization policy adopted for managing resources to implement the Rs 2.124 trillion budget.

During a discussion with media representatives today, Wagle stated that the current target for public debt remains around 42 to 43 percent of the Gross Domestic Product (GDP).

“The overall size of the budget compared to the GDP has actually decreased. It is being claimed that the public debt has been continuously added to, but that is not the case. It stands at around 42 to 43 percent of the GDP, which is the same ratio as before,” Wagle said. “The International Monetary Fund (IMF) has noted that Nepal’s debt sustainability risk is at a low level. The implication is that we can afford to take on more debt.”

He further argued that while debt should not be utilized to build petty structures like goat sheds, borrowing is entirely justified if invested in economic development projects, a stance he claims is supported by the IMF itself.

Wagle added that for low-income countries, it is generally considered acceptable for public debt to reach up to 50 percent of the GDP.