Kathmandu: In recent years, the volume of foreign aid received by Nepal has experienced a decline, as revealed in the Economic Survey 2081/82 BS (2025/26) presented by the Deputy Prime Minister and Finance Minister during today’s session of the House of Representatives.
According to National News Agency Nepal, in the fiscal year 2080/81 (2024/25), the Federal Reserve Fund of Nepal received Rs 24.01 billion in foreign grants and Rs 113.27 billion in foreign loans, totaling Rs 137.28 billion in foreign aid. Loans constituted 82.5 percent of this total, while grants made up the remaining 17.5 percent. This aid constituted 2.4 percent of the nation’s Gross Domestic Product (GDP).
The survey indicates that 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, resulting in a total of Rs 74.63 billion in foreign aid. This figure represents a 13.8 percent decrease compared to the same period in the previous fiscal year.
Despite the reduction 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 notes that the primary balance and revenue balance are currently in surplus, alongside a significant increase in foreign aid commitments.