Kathmandu. Deputy Prime Minister and Finance Minister Bishnu Prasad Poudel has said in a meeting of the House of Representatives on Saturday that external debt would be spent on capital formation.

Responding to questions on the bill to raise national debt in the House of Representatives meeting, the Finance Minister said that foreign loans and grants would be used for the construction of national capital.

He said the government was in favour of not spending external debt for general expenses. “We need to be clear. Don’t take loans for ordinary expenses. It should be taken for capital expenditure,” he said, adding that loans should be taken to increase production and productivity. I would like to respect the suggestions that have come up for this. The government’s approach is the same. ’

He further said, “It has been proposed to increase the liability to be borne by the revenue when comparing the national debt of the current and the upcoming fiscal year. This means that we will spend the loan in the field of capital formation. Finance Minister Poudel said that the loan has been taken in a restrained manner as the responsibility of the past is high.