Youth Demand Accountability in Nepal’s Public Debt Strategy

LALITPUR — Stakeholders and young leaders in Nepal have called for a fundamental shift in how the nation views its public debt, stressing that discussions should move beyond the sheer size of national borrowing or its ratio to gross domestic product. Speaking at a dialogue titled “Debt, Development & Us: A Youth Dialogue on Nepal’s Public Debt” organized by Yuwa Abhiyan and AIDS Healthcare Foundation Nepal in Lalitpur, participants emphasized that the true impact of public debt depends on how effectively funds are used, their borrowing costs, social and economic returns, and overall fiscal sustainability for future generations.

During the event, Associate Professor of Economics at Tribhuvan University, Dr. Resham Thapa, provided an overview of public borrowing concepts alongside Nepal’s national debt scenario. A central panel discussion titled “Voices Behind the Debt,” moderated by Prof. Dr. Dipesh Kumar Ghimire, brought together experts including Dr. Kalpana Khanal, economic journalist Gajendra Budhathoki, ActionAid International Nepal’s Devendra Singh, and PhD candidate Nischal Dhungel. The panel examined how public expenditure and borrowing directly shape domestic job creation, education, healthcare, skills development, and long-term tax obligations for young citizens.

Speakers also drew a direct connection between domestic debt management and youth migration, noting that a lack of adequate employment at home continues to push thousands of young Nepalis to seek opportunities abroad. They urged the government to channel borrowed funds into productive investments capable of generating local industries and entrepreneurship. Furthermore, the dialogue highlighted fiscal justice, warning that mounting debt service obligations must not compromise public investments in essential social sectors like healthcare and education, nor should the financial burden fall disproportionately on low-income communities.

To ensure greater transparency and citizen oversight, participants called for open access to information regarding loan terms, investment locations, project returns, and repayment plans. Yogesh Kafle, President of Youth Initiative, underscored that public debt directly affects the opportunities and future of young citizens, making active youth participation essential in policy discussions and project monitoring. The dialogue concluded with key recommendations for rigorous cost-benefit and social-impact assessments before debt-funded projects are launched, prioritizing high-yield sectors, expanding the tax base, and strengthening public finance governance.