KATHMANDU: Deputy Prime Minister and Finance Minister Bishnu Prasad Poudel has presented the mid-year budget review report for the fiscal year 2081/82, reducing the initially allocated budget by 9.01%.
While presenting the report at the House of Representatives, Minister Poudel stated that the estimated expenditure has been revised down from Rs 1 trillion 860 billion and 300 million to Rs 1 trillion 692 billion and 730 million.
The report highlights a mixed performance in budget implementation, with economic activity showing some improvement due to ongoing economic reform programs.
However, capital expenditure, a key driver of economic growth, has not significantly improved from previous trends, where it typically remains sluggish in the first half of the fiscal year.
Despite this, Minister Poudel expressed optimism that economic growth will remain close to the government’s target, citing policy measures, external sector stability, adequate liquidity, and lower interest rates as contributing factors.
The report also notes that overall expenditure has increased by 17.66% compared to the same period last year.
However, challenges such as the inclusion of unprepared projects in the budget, procedural delays in utilizing forest resources, complexities in procurement laws, and a lack of inter-agency coordination have hindered the achievement of capital expenditure targets.
Comment