Half-yearly review of budget: Govt downsizes budget to Rs 1,692.73bn

KATHMANDU: The government has revised the budget for the current fiscal year through its half-yearly review.

Presenting the budget review in Thursday's House meeting, Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel announced that the revised estimate for the current fiscal year stands at Rs 1,692.73 billion, down from Rs 1,860.3 billion initially tabled in the House. This revision represents 90.99% of the total allocation announced in the budget speech.

According to Finance Minister Paudel, the revised budget estimates Rs 1,029.3 billion for current expenditure, Rs 299.5 billion for capital expenditure, and Rs 363.93 billion for fiscal management.

The revised estimation indicates that Rs 1,476.26 billion will be sourced from government resources, including revenue collection and internal loans. Additionally, Rs 36.62 billion will be managed through foreign grants, and Rs 180.83 billion will be secured via foreign loans by the end of the fiscal year.

Minister Paudel stated that Rs 34.89 billion has been released to the provinces and Rs 150.26 billion to local governments under the fiscal transfer.

The half-yearly review also highlighted the need for reforms in budget implementation and resource management. It was stated that new organisations would not be created in government offices, regulatory bodies, and public enterprises, and austerity measures would be applied.

In the House of Representatives (HoR) meeting, Finance Minister Paudel criticised the previous government's budget, claiming it was not based on sound budget principles and was a burden. He expressed concern that the previous government had included projects worth as little as Rs 75,000, violating a cabinet policy decision not to implement fringe projects below Rs 30 million.

Minister Paudel also highlighted an underfunding issue, stating that the Ministry of Health and Population is short by Rs 30 billion.

Furthermore, the Finance Minister revealed that over Rs 56 billion was spent in the first six months of the current fiscal year, compared to Rs 49.91 billion in the same period last fiscal year.

Sharing some economic indicators, Minister Paudel noted that remittance inflow has not decreased compared to the previous fiscal year. He also argued that recent ordinances presented by the incumbent government have addressed economic challenges and energised the private sector.

Additionally, Minister Paudel stated that revenue collection is on track to meet the target, and public fiscal management has been reformed with the implementation of a computer-based accounting system.

The next HoR meeting is scheduled for 1:00 pm today. Meanwhile, the Finance Minister held a news conference at the Ministry on Thursday evening to discuss the half-yearly budget revision report. Minister Paudel emphasised the government's focus on performance and ensuring results, adding that efforts to reform the economy are ongoing.

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