KATHMANDU: The government has revised the current fiscal year’s budget, reducing its size by 14.04 percent in a mid-year review, according to the Ministry of Finance.
The original budget of Rs 1.964 trillion, presented on Jestha 15, has been adjusted to Rs 1.688 trillion. Under the revised allocation, Rs 1.126 trillion is earmarked for current expenditure, Rs 2.43 billion for capital expenditure, and Rs 319 billion for financial management.
By the end of the fiscal year, the revised estimates indicate Rs 1.515 trillion will come from government sources, Rs 30.99 billion from foreign grants, and Rs 142 billion from foreign loans.
Finance Minister Rameshore Khanal said the capital expenditure could not increase due to the need to focus on institutional stability and elections following the Gen-Z movement and subsequent transitional period. He added that over Rs 20 billion has been allocated specifically for election-related expenses, and some previously frozen budget provisions have already been released.
Minister Khanal noted that implementation challenges in major projects have limited spending, though corrective measures are underway. He added that issues with budget execution have historically persisted even when budgets are planned with pending payments in mind.
During the mid-year review period, Rs 3.82 billion was transferred to the provinces and Rs 152.46 billion to local bodies. The Ministry of Finance reported that 39.14 percent of provincial allocations and 47.60 percent of local-level allocations have been disbursed so far.
Khanal stressed that controlling inflation and regulating prices remain a government priority in the current fiscal year.
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