The government has presented the National Debt Raising Bill, 2083 to make legal arrangements for raising public debt to implement the financial proposals of fiscal year 2083/84.

According to the bill, the Government of Nepal may raise national debt of up to Rs. 410 billion in FY 2083/84. This limit will be in addition to amounts payable as overdraft and other outstanding liabilities at the end of the fiscal year, but it will not include overdraft facilities the government is allowed to take under existing law.

The bill also allows the government to authorize Nepal Rastra Bank to convert outstanding overdraft amounts up to FY 2083/84 into treasury bills.

The repayment period and interest rate for the principal and interest of the debt raised under this bill will be determined according to the Public Debt Management Act, 2079. The proposed Act will come into force from Shrawan 1, 2083.