Kathmandu: The government has revised the national budget for the current fiscal year following its half-yearly review, downsizing the total allocation to Rs 1692.73 billion from the initially proposed Rs 1860.3 billion.

Presenting the revised budget in the House of Representatives, Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel stated that the adjusted budget now stands at 90.99% of the original allocation.

Breakdown of Revised Budget

According to Minister Paudel, the revised budget prioritizes three key expenditure areas:

  • Current Expenditure: Rs 1029.3 billion

  • Capital Expenditure: Rs 299.5 billion

  • Fiscal Management: Rs 363.93 billion

Funding Sources and Allocation

To finance the revised budget, the government plans to utilize multiple sources:

  • Government Resources (Revenue & Internal Loans): Rs 1476.26 billion

  • Foreign Grants: Rs 36.62 billion

  • Foreign Loans: Rs 180.83 billion

Additionally, Rs 34.89 billion has been allocated for provincial governments, while Rs 150.26 billion is designated for local governments under fiscal transfer mechanisms.

Key Policy Adjustments and Reforms

The government has outlined various measures to improve budget implementation and resource management. Notable reforms include:

  • Restricting the Creation of New Government Entities: No new regulatory bodies, public enterprises, or government offices will be established.

  • Enforcing Austerity Measures: The administration aims to cut unnecessary expenses and streamline financial operations.

Minister Paudel criticized the previous government for structuring a budget that did not adhere to sound fiscal principles. He specifically highlighted the inclusion of small-scale projects worth as little as Rs 75,000, which violated the Cabinet’s policy-level decision to exclude projects under Rs 30 million.

Sectoral Challenges and Economic Indicators

One of the pressing concerns raised in the review was the underfunding of the Ministry of Health and Population, which is facing a shortfall of Rs 30 billion.

Comparing expenditure trends, the government spent over Rs 56 billion in the first half of the current fiscal year, up from Rs 49.91 billion in the same period last year. Minister Paudel noted that remittance inflows have remained stable and credited recent government ordinances for addressing economic challenges and revitalizing the private sector.

Revenue and Fiscal Management

The Finance Minister expressed optimism about revenue collection, stating that it is on track to meet its target. He also emphasized the government’s focus on public fiscal management, including the implementation of a computer-based accounting system to enhance efficiency and transparency.

Next Steps

The next House of Representatives meeting is scheduled for Friday at 1:00 PM. Meanwhile, Minister Paudel held a press conference at the Ministry, reaffirming the government's commitment to performance-driven governance and continued economic reforms.