Nepal, March 20 -- The National Natural Resources and Finance Commission (NNRFC) has set the ceiling on internal loans that the federal, provincial and local levels can take for the upcoming fiscal year 2027/28.

Based on the macro economic situation, revenue trends, expenditure pressures, and the condition of the financial market, the NNRFC has emphasised on maintaining discipline in debt management and has formally recommended it to all three levels of government.

According to the recommendation made by the NNRFC to the government on March 11, the federal government will be allowed to mobilise internal debt up to a maximum of 5.5 percent of the total gross domestic product in the coming fiscal year.

This limit has been set to maintai...