Finance Minister Sharma downsizes budget

New budget allocates Rs 1.647 trillion for FY 2021/22


September 10, 2021


Finance Minister  Sharma downsizes budget

Finance Minister Janardan Sharma. (File photo)

KATHMANDU:  Through the replacement ordinance, the government has reduced the size of the budget brought formerly by KP Oli government.

Finance Minister Janardan Sharma presented the budget of Rs. 1.632 trillion on Friday.

The size of the budget has been reduced by Rs. 16.74 billion as compared to the budget presented through the ordinance. Earlier, a budget of Rs 1.647 trillion was presented in the ordinance during Oli-government.

Out of the total allocation, the Federal government’s current expenditure is Rs 677.19 billion or 41.42 percent, capital expenditure is Rs 378.10 billion or 23.16 percent and financial management is Rs 189.44 billion or 11.6 percent.

Likewise, 387.30 billion or 23.72 percent of the budget has been allocated to Province and Local levels through financial transfer.

The government has cut fuel and travel expenses by 10 percent. The government has cut budgets for allowances, fuel and travel expenses by 10 percent. While presenting the ordinance, Finance Minister Janardan Sharma said that at least 10 percent budget has been cut in fuel, allowance, vehicle and other maintenance.

Sharma said the Rs 5 billion saved from the cut would be used to buy vaccines against coronavirus.