Nepal govt reduces size of budget for current fiscal by 14 per cent
Feb 12, 2023
Kathmandu [Nepal], February 12 : Nepal's Finance Minister published the mid-term budget review report in the House of Representatives on Sunday, with the government this year reducing the size of the budget by 14 per cent.
The fiscal budget of 2079/80 presented by Nepal's former Finance Minister Janardan Sharma, which stood at NRs 1.793 trillion, was reduced by his successor Bishnu Paudel. It now stands at NRs 1.549 trillion.
Bishnu Paudel announced further that the government has made amendments to its earlier projections. The Finance minister, while publishing the mid-term budget review report, also made it clear that the target of an 8 per cent economic growth rate set for the current fiscal year will not be achieved.
"As per our amendment projections, the governmental expenses in the current fiscal has been reduced by 14 percent. Likewise, in the part of revenue mobilisation, we have revised our estimates by about 88 per cent. The foreign aids now has changed to down," Paudel told reporters during a press meet later in the evening at the Finance ministry office.
Paudel said although there has been some improvement in the tourism sector, the economic growth target for the current fiscal year is unlikely to be met as the manufacturing industry is seemingly not able to operate at full capacity.
Paudel further said that Nepal's economy is under extreme pressure due to the low revenue collection as a result of the government's import restrictions and the slowdown in the supply chain. He said the current and long-term obligations of the government have added more pressure and the economic growth target set by the government will not be achieved.
Paudel has said the strict economic policies across the world amid fears of a global slowdownhas further posed challenges to Nepal's economic policy. He mentioned that rice production will increase slightly compared to last year. However, he acknowledged that even though the target was to keep inflation within the limit of 7 per cent in the budget, it has reached 7.26 per cent.
