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Govt reduces budget size to Rs 1.344 trillion


09 February 2021  

Time taken to read : 4 Minute


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KATHMANDU: The government has made amendments to the annual estimates of income and expenditure or budget of the current fiscal year.

Making public a mid-term review report of the fiscal year 2077/78 BS at the Ministry of Finance today, Finance Minister Bishnu Prasad Poudel shared that an amendment was made to the budget. The amended estimation of spending in the fiscal year is set to be Rs 1,344 billion 680 million. The amount is around 91.19 percent of the total appropriated budget.

The budget amounting to Rs 1446 billion was presented by the government at the then federal parliament on last 28 May 2020. While making this forecast, liabilities related to the mid-term election to the House of Representatives, COVID-19 vaccination, routine liabilities, and potentials costs of prior approved mega projects were not in the frame, the minister informed.

The estimated expenditure includes Rs 914 billion and 780 billion towards recurrent expenses i.e 96.40 percent of the appropriated budget; Rs 283 billion and 40 million towards capital spending i.e. 80.20 of the appropriated budget and Rs 146 billion 860 million towards financial management i.e. 85 percent of the appropriated budget.

At the end of the current fiscal year, the expenditure to be incurred from public revenue and domestic borrowing will be Rs 174 billion 740 million while it will be Rs 35 billion towards foreign aid and Rs 235 billion towards foreign debt.

Minister Poudel shared that the current revenue collection status and previous trends have been taken into consideration while estimating the revenue target of the current fiscal year. The amended action plan for the remaining period of the fiscal year will be developed and implemented, he shared. The arrangement has been made to settle the remaining payment of the works completed.

Priority would be given to the liability payment of the projects that have remained incomplete due to Covid-19 last year. Separate monitoring and evaluation would be conducted on the project run with international financial assistance and the complicacies surfaced in implementation managed accordingly.

Moreover, the revenue administration would be mobilized fully to achieve the goal of revenue collection by making an alternative work plan on revenue collection for the remaining period. The concerned project chiefs and ministries would be made responsible for timely reimbursement of the foreign loan and grant. All amount under the budget assistance would be received within the existing fiscal year by completing preconditions.

The government has also planned to mobilize internal loan as an estimate in the budget by analyzing cash flow. Coordination would be made with the province and local levels by the Finance Ministry to solve the problems that emerged in budget implementation.

Meanwhile, the multiyear contract standard, 2077 for the project has been brought to implementation after the approval of the Cabinet.

Publish Date : 09 February 2021 16:46 PM

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