Provincial Public Debt Management
A Province may raise loans from internal sources as provided by provincial law. External borrowing by provinces requires federal government approval.
Provinces can borrow money internally (from Nepali banks, bonds) under provincial law. But they CANNOT borrow from foreign sources without federal permission. This prevents provinces from racking up unsustainable foreign debt that the nation would have to bail out. It\'s a fiscal safety valve — provincial borrowing yes, but with federal guardrails for international debt.
प्रदेशले आन्तरिक स्रोतबाट ऋण लिन सक्छ। बाह्य ऋणमा संघीय सरकारको स्वीकृति चाहिन्छ।
Allows provinces to finance development while preventing reckless foreign borrowing.
Federal approval requirement can be used to politically constrain opposition-ruled provinces.