I have been trying to study economics and doing research from the past couple of days,
Here I would like to present some facts that I have collected.
Greece was one of the great countries in terms of budgets and everything but Greece started facing a financial crisis which started way back but phased and got hit in 2007 to 2008, due to the instability of the government.
They are the part of the EU (European Union) but during that EU felt that Greece is just pain for us for the first time and said won’t let them use their currency.
Because there was a criterion for using the Euro in EU countries. For that, your debt must be below 60%.
But when Greece applied for Euro they were in 97% of the debt.
Here the government played again and manipulated every data and everything to get Euro in their country.
After a whole lot of manipulation, they got the Euro but debt kept going.
After that everything is history.
But right now with the help & support by EU, they are trying to make it great again. In 2019 they are kind of stable but still, the unemployment rate is high as compared to previous data.
There are so many things happening in Greece but I would that will be enough for you to understand our situation.
Now here comes a twist in Nepali economy, back in 2017 there was a research conducted and said each Nepali owes Nepal and foreign nations Rs 24,147.
This is 2020 and the rate as per my analysis kept going with the ratio of 3000 per head per year. I’m not quite sure about this rate but this is just my analysis.
In 2020 I believe each Nepali owes 33,000 something to foreign nations. I would like to mention that this is not an accurate data that I’m presenting here, I’m just assuming that the ratio is increasing.
Now let me do the calculation here, we have a total of 2 crores 90 lakh 90 thousand 150 people or somewhere around in our country that means total we have to 9 Kharb (खर्ब) to foreign nations, that is huge though.
Well, I hope that ratio is not increasing in our country, that all I have done is an analysis based on incremental condition.
Now here If I see Debt to GDP ratio by country population this shows 3.45 billion that is almost 16% of the debt 120 USD per capita. Meaning debt has been decreased? I don’t know if this data is right or wrong not sure. But still, that has shown by a population review.
Here still we are lacking opportunities, unemployment rates are growing I would say because every day we see someone going abroad for the job.
Okay, you will say going abroad is good, isn’t it? We will get the remittance as revenue and so many things. But if you want to grow a country and make it strong we need to create more opportunities in the country itself.
Agriculture is not focused yet, education has been focused on a budget widely but hasn’t been effective as compare to other countries. Here I would definitely take the example of Finland.
The government should allow Youths to Act; Force them to work for the country. But still forcing isn’t the solution government should be more stable. The government should increase production and development sector. The government should segregate budget for R & D.
There are so many things to do. But still, this is not too late, if debt kept going by 2030 to 2035 we will definitely face Financial crisis.
Moreover, if we keep depending on India and China we will face Crisis will be there. If and only if we failed to increase the productivity and export crisis is defined.
And if we see our recent budget it said 2.99 Kharba is Foreign loan and 2.25 is Internal loan. If we see the previous year loan 298.83 billion was foreign Debt and 195.00 billion was Internal debt.
Along with that, we have the inflation rate of 7% at this time, the healthy inflation rate is 1% to 2% as economics defines. But 7% is huge for us I believe.