Less foreign aid received in recent years

Kathmandu, May 29: In recent years, the volume of foreign aid received by Nepal has declined, according to the Economic Survey 2081/82 BS (2025/26) presented by Deputy Prime Minister and Finance Minister during today’s session of the House of Representatives.

In the fiscal year 2080/81 (2024/25), the Federal Reserve Fund received Rs 24.01 billion in foreign grants and Rs 113.27 billion in foreign loans, amounting to a total of Rs 137.28 billion in foreign aid. Of this, loans accounted for 82.5 percent and grants 17.5 percent. The total foreign aid received during this period represented 2.4 percent of the Gross Domestic Product (GDP).

As per the survey, by the end of Falgun (mid-March 2025) in the current fiscal year, Nepal had secured Rs 9.16 billion in foreign grants and Rs 65.74 billion in foreign loans, bringing the total foreign aid to Rs 74.63 billion. This marks a 13.8 percent decline compared to the same period in the previous fiscal year.

Despite the decrease in aid, public finance indicators have remained stable up to mid-March. A 12.6 percent increase in federal revenue mobilization has contributed to improvements in both the budget and fiscal deficits. The survey also highlights that both the primary balance and revenue balance are in surplus. Additionally, there has been a notable rise in foreign aid commitments.