KATHMANDU: The government has reduced the budget target for the current fiscal year as per the mid-year review.

Finance Minister Dr. Prakash Sharan Mahat, in a mid-review meeting of the budget held at Singha Durbar on Monday, revealed that only 87.38% of the total allocated budget is estimated to be spent in the current fiscal year.

The government had initially allocated a budget of Rs 1.751 trillion for the ongoing fiscal year 2080/81.

However, in the mid-year review, the government has revised the estimated expenditure to be Rs 1.53 trillion.

This revision accounts for 87.38% of the total budget allocation.

Minister Mahat mentioned that the revenue situation does not seem promising as per the target and cited the need to reduce the budget size.

He stated that there has been positive growth in indicators such as improvement in banking liquidity, increased foreign investment commitment, growth in the tourism sector, and a 4% increase in loans.

Mahat emphasized that despite positive signs in the overall economy, it is not sufficient.

He highlighted the need for improvements in banking liquidity, increased foreign investment commitment, growth in the tourism sector, and a 4% increase in loans.

Dr. Mahat shared that revenue collection is estimated to have grown by 14.14% compared to the previous year.

Moreover, the Finance Minister informed that the International Development Association (IDA) of the World Bank is planning to organize a conference in Nepal.

He shared that representatives from 92 countries, including the President of the World Bank, are expected to attend the conference in Nepal.