Laxmi Capital News
Govt to raise Rs 12.61b in treasury bills

The government has decided to make internal borrowing ofanother Rs 12.61 billion.

The Nepal Rastra Bank (NRB), the central monetaryauthority, published a notice of Treasury Bill Auction worth Rs 12.61 billionon Sunday. The auction will put the government’s total internal borrowing sofar to Rs 133.61 billion.

The government plans to raise Rs 145 billion from thedomestic market in FY2017/18.

The government, which started facing shortage ofspendable cash since the first month of the current fiscal year, has announcedto make the targeted borrowing.

The maturity of the treasury bills in four separate lotsvaries from a month to 12 month, according to the notice. 

The government has witnessed fund crunch in the currentfiscal year particularly due to lump sum allocation in tune of Rs 225 billionto the local units in three installments. The last installment was disbursed tolocal units three weeks ago. 

Cost of election and also distribution of relief to floodvictims in eastern and central region were the other major factors behinddepletion of state treasury.


Source : My Republica, 2nd April 2018

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