Half-yearly progress of current budget mixed: Finance Minister Paudel

KATHMANDU: Deputy Prime Minister and Finance Minister, Bishnu Prasad Paudel, has said that the results of the half-yearly progress of the budget for the fiscal year are mixed.

During National Assembly meeting on Sunday, Minister Paudel presented the 'Half-Yearly Assessment Report of Budget Implementation for Fiscal Year 2081/82', highlighting various challenges and achievements.

Minister Paudel pointed out that geopolitical tensions and other international factors have disrupted the supply chain, hindering expected loan expansion and posing challenges in reaching the economic growth target due to a lack of improvement in the construction sector. He stated, "Although the government's policy arrangements and reform efforts, combined with external balance, sufficient liquidity, and assurance of low interest rates, are expected to boost economic activities and bring us closer to this year's economic growth rate target."

He also emphasised that continuous efforts to improve public financial management systems and the implementation of accounting and reporting systems in accordance with international standards have enhanced the transparency and reliability of the financial system.

During the review period, overall expenditure has increased by 17.66% compared to the same period in the previous fiscal year. However, the Finance Minister noted that capital expenditure, a key driver of economic growth, has not seen significant improvement and is expected to remain sluggish until the middle of the fiscal year.

Minister Paudel informed the assembly that the revised estimate for total spending in the current fiscal year is approximately Rs 16.92 trillion, down from the initial estimate of Rs 18.60 trillion.

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