Government has proposed spending Rs 1.946trn next fiscal. The budget size for fiscal year 2025/26 is 5.6 percent larger than Rs 1,860.30bn allocated for the current fiscal year. However, the allocation for the current fiscal year was downsized to Rs 1,692.73bn by mid-term review of the budget in February.
Presenting the budget for fiscal year 2025/26 in the joint session of the federal parliament on Thursday, Deputy Prime Minister and Minister for Finance Bishnu Prasad Paudel said Rs 1,180.98bn, or 60.1 percent, has been allocated for recurrent expenditures, Rs 407.89bn, or 20.8 percent, for capital expenditures and Rs 375.24bn, or 19.1 percent, for financial management. The new fiscal year begins on July 17.
Likewise, the government has set a revenue target of Rs 1,315bn while it targets to mobilize Rs 53.45bn in foreign grants. “There will be a deficit of Rs 595.66bn. To meet this gap, the government plans to raise Rs 233.66bn through foreign debt and Rs 362bn through domestic debt,” he added.
The government has set achieve high, sustainable, and broad-based economic growth to eradicate poverty; promoting entrepreneurship and expanding public and private investment to create employment; enhance economic capacity by increasing the use of modern technology; establish social justice through social prosperity and development; and promote quality public services and good governance as the priorities of the budget. The government had initially set a total revenue target of Rs 1,419.3bn for the current fiscal year. It was, however, lowered to Rs 1,286bn through the mid-term review. The government has made 67.67 percent progress in revenue collection as of Thursday.
It fares even worse in expenditure as its total expenditure stands at 66.08 percent as of Thursday, reflecting the weak spending capacity of the government. Capital spending remained at a dismal 37.15 percent. The government has set aside Rs 352.35bn for capital expenditure and Rs 1,140.66bn in recurrent expenditure for the current fiscal year.
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