May 3: The government had set a target of taking internal loan of Rs 172 billion in the current fiscal year. However, with just two months remaining in FY 2018/19, the government is yet to take the loan. Concern officials have termed this as an achievement of the government,

A high-ranking official at the Ministry of Finance told New Business Age that the government was always careful about austerity measures since its formation. That is the reason why the government did not require to borrow internal loan although it had set a target to take such loan.

Although the government did not show much interest to acquire internal loan, it seems that the government is active in lobbying for foreign loan and assistance. As a result, the government has got assurance of Rs 112 billion foreign aid, which the government considers as another achievement.

An official at the Ministry of Finance said that the government did not take internal loan as it would have caused liquidity crunch and the government would have to bear the burden of paying interest.

Normally, the government takes internal loan after failing to meet the expenses from revenue collection. The government can raise internal loan by issuing development bonds, foreign employment bonds, national saving bonds, citizens saving bond and treasury bill.