Government Revises Budget to Rs 1,692.7 Billion in Half-Yearly Review

The government has revised the national budget for the current fiscal year, reducing it to Rs 1,692.73 billion from the previously allocated Rs 1,860.3 billion, according to Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel.

Presenting the half-yearly budget review in Parliament on Tuesday, Minister Paudel stated that the revised budget now stands at 90.99 percent of the initial allocation. Under the revised estimation, Rs 1,029.3 billion is allocated for current expenditure, Rs 299.5 billion for capital expenditure, and Rs 363.93 billion for fiscal management. The government aims to finance Rs 1,476.26 billion through revenue collection and internal loans, while Rs 36.62 billion will be managed through foreign grants and Rs 180.83 billion through foreign loans. Additionally, Rs 34.89 billion has been allocated for provinces and Rs 150.26 billion for local governments under fiscal transfers.

Emphasizing fiscal discipline, the government announced that no new institutions would be established in government offices, regulatory bodies, or public enterprises. Austerity measures would be implemented to ensure better budget execution and resource management. Minister Paudel criticized the previous administration, stating that the budget was not formulated based on sound financial principles and calling it a burden on the economy. He pointed out that the inclusion of projects worth as little as Rs 75,000 violated the Cabinet’s policy of restricting fringe projects below Rs 30 million. He also highlighted that the Ministry of Health and Population is underfunded by Rs 30 billion.

Government expenditure in the first six months of this fiscal year stood at Rs 56 billion, up from Rs 49.91 billion in the same period last year. Minister Paudel noted that remittance inflows have remained stable and claimed that recent ordinances introduced by the government have addressed economic challenges, boosting private sector confidence. Revenue collection is expected to meet the target, and public fiscal management has been strengthened through the implementation of a computer-based accounting system to enhance transparency and efficiency.

Following the parliamentary session, Minister Paudel held a press conference at the Finance Ministry, reiterating the government’s commitment to economic reforms and results-oriented governance. The next session of the House of Representatives is scheduled for 1:00 PM on Friday.