By Himalayan News Service :
In view of tepid spending in the first six months of the current fiscal year (mid-July to mid-January), the government has slashed the annual budget by 5.3 per cent to Rs 1.546 trillion.
During the mid-term review of the budget here today, Finance Minister Janardan Sharma informed that the government’s spending target had been reduced by Rs 86.55 billion and blamed lack of proper groundwork before budget announcement for sluggish capital expenditure.
According to the revised budget, the government has now allocated Rs 1.035 trillion for recurrent expenditure, 92.7 per cent of the earlier allocation; Rs 340.32 billion for capital expenditure, 90.01 per cent of previous allocation; and Rs 170.49 billion for fiscal management, 90 per cent of earlier allocation.
Citing legal and structural hurdles in accelerating development budget, Minister Sharma said the government had already initiated various policy reforms. However, he also said that those responsible to carry out project works did not make honest efforts and shortage of competent human resource were equally significant hindrances.
It is to be noted that in September last year, Minister Sharma had unveiled replacement budget that had already reduced the size of the budget for the current fiscal 2021-22 by nearly Rs 15 billion to Rs 1.632 trillion. This included recurrent expenditure of Rs 677.99 billion, capital expenditure of Rs 378.10 billion, and Rs 189.44 billion for fiscal management. Similarly, Rs 387.30 billion had been allocated for fiscal transfers to the provincial and local levels. Of this amount, Rs 325.76 billion had been earmarked as equalisation grant and Rs 61.55 billion as conditional grant.
The ordinance budget for the current fiscal year announced by former finance minister Bishnu Paudel in May last year had amounted to Rs 1.647 trillion – Rs 678.61 billion allocated for recurrent expenditure, Rs 374.26 billion for capital expenditure, and Rs 207.97 billion for fiscal management.
He had announced that Rs 386.71 billion would be transferred to the provincial and local governments, with Rs 325.74 billion as equalisation grant, and 60.97 billion as conditional grant.
In a nod to emerging challenges due to technological advancements, Minister Sharma informed that the government will soon form a committee to investigate and regulate the flight of capital due to illegal use of technology for investing in hyper-funds, betting, gaming and cryptocurrencies.
He further informed that policy level initiatives are being taken to minimise the stress on the country’s foreign currency reserve.
