Uncontrolled public spending in Nepal threatens economic stability and growth.
The study looked at how government spending in Nepal affects economic growth. They analyzed data from 1975 to 2019 and found that regular spending is increasing, while capital spending remains consistent. Regular spending is linked to overall government spending, but capital spending is not. This means that the government's budget policies mainly impact regular spending and not capital spending. The study suggests that uncontrolled regular spending and limited capital spending could harm Nepal's economic stability and growth.