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Finance Minister Professor Biman Prasad has once again highlighted the coalition government’s commitment to fiscal discipline, citing efforts to reduce debt-to-GDP ratio from nearly 90 percent in 2022 to below 80% by July this year.

Despite these improvements, Prasad says debt servicing costs remain substantial, ranging from $85 million to $90 million per month.

Prasad says the government has earmarked approximately $1 billion from the national budget of $4.3 billion specifically for debt servicing.

He adds by prioritizing debt reduction and efficient budget management, the government aims to create a more sustainable economic environment for the country.

“We are looking ahead for a 3 percent growth or slightly more than three percent growth in 2024 but our target is 5 percent because if we do not grow at a rate of about 4 to five percent we cannot bring down the debt to GDP ratio and support the infrastructure needs, social services needs of our people that will improve the quality of the lives of our people.”

Prasad called for ongoing reflection and dialogue to turn challenges into opportunities for growth. He emphasized that the government’s support, combined with the collective efforts of indigenous entrepreneurs, could drive significant economic progress.