Kathmandu, May 29
Finance Minister Janardan Sharma Prabhakar
announced a budget of Rs. 1793.83 billion for the upcoming Fiscal Year 2022/23 with
priority to agriculture, poverty alleviation and employment generation.
The budget size is larger by 9.86 per cent
compared to that of the current FY 2021/22. But its 16 per cent larger than the
adjusted figures of the last year's budget. Through the replacement bill
2021/22, which was endorsed by the parliament two months after the beginning of
the fiscal year, FM Sharma had announced the budget of Rs. 1632.82 billion. It
was adjusted to Rs. 1546.2 billion in the mid-term review.
Speaking at the joint session of the
Federal Parliament, FM Sharma informed that he allocated Rs. 753.4 billion for
recurrent expenditure, Rs. 380.3 billion for capital spending and Rs. 230.2 for
financing. These allocations comprise of 42 per cent, 21.2 per cent and 12.8
per cent respectively. Likewise, Rs. 429.8 billion (24 per cent) is allocated
for financial transfer to the provinces and local levels.
Although the size of estimated expenditure
for the next year has increased, the capital budget has not been increased
significantly – it has seen an increase of only Rs. 2.3 billion compared to
this year's Rs. 378 billion.
To finance these expenditures, FM Sharma has
proposed to raise Rs. 1240.1 billion in revenues and Rs. 55.4 billion from
foreign grants. Even after that, the size of budget deficit would be Rs. 498.2
billion which is to be fulfilled from foreign loan and domestic borrowing – Rs.
242.2 billion and 256 billion respectively.
Transformation of agriculture
The budget endorses the policy for the
transformation of agriculture to increase production and create employment,
promotion of export and replacement of imports, creation of self-reliant economy
and end of absolute poverty.
In numbers, the government has put an 'ambitious'
target to decrease imports of rice, maize, wheat, vegetables and fruits by 30
per cent, and imports of other goods by 20 per cent over a year's period.
It also aims at doubling the exports and
creating trade balance in the next five years, increase decent jobs by 30 per
cent in a year, provide housing to landless Dalits, and pull 800,000 citizens
out of absolute poverty.
Former finance ministers and economists
said that it would be challenging for the government to manage the resources
and meet the expenditure targets. In the current year, the government's income
amounts to Rs. 954.3 billion including grants in 10.5 months – it is 76.9 per
cent of the total target. But it could spend only 58.6 per cent of the total
budget allocation in the same period.
Major allocations
The Ministry of Education, Science and
Technology (MoEST), Ministry of Home Affairs (MoHA) and Ministry of Physical
Infrastructure and Transport (MoPIT) have received the largest allocations of
the budget.
These three ministries combined take about
31.15 per cent of the total budget.
Education Ministry has received Rs. 196.3
billion - 10.95 per cent of the total expenditure estimates, Home Ministry Rs.
185.9 billion or 10.37 per cent, and Infrastructure Ministry Rs. 176.3 billion
– 9.83 per cent.
Other favourites of the next year's budget
are Ministry of Health, Ministry of Agriculture and Livestock Development,
Ministry of Defense, and Ministry of Urban Development. Health Ministry
received 5.75 per cent (Rs. 103 billion) allocation, Agriculture Ministry 3.34
per cent (Rs. 59.8 billion), and Defense Ministry and Urban Ministry received
3.07 per cent (55 billion) each.
Other ministries in the top ten list of the
largest budget allocations are Ministry of Finance (2.39 per cent), Ministry of
Water Supply (2.09 per cent), and Ministry of Federal Affairs and General
Administration (2.06 per cent).
On the contrary, according to the budget speech,
Ministry of Law, Justice and Parliamentary Affairs received only 0.05 per cent
of the total budget (Rs. 886 million), Ministry of Women, Children and Social
Welfare 0.10 per cent (Rs. 1.7 billion), Ministry of Youth and Sports 0.18
billion (Rs. 3.2 billion), and Ministry of Foreign Affairs 0.33 per cent (Rs.
5.8 billion).
Increasing budget efficiency
Against the backdrop of poor budget
spending in the past several years and finance ministers' commitment to address
the challenge, Finance Minister Sharma said that new policy and management
reforms would be made to increase the effectiveness of capital expenditure.
"Mobilisation of capital budget is hit
by structural and procedural problems, lack of project preparedness and
integrated law for project implementation, poor utilisation of project bank,
tender management and governance," he said.
He said that the two-shift working
provision would be implemented and project monitoring would be made effective.
Time to complete project would be considered as an important indicator in
tender evaluation.
Similarly, process of environment impact
assessment would be finalised rapidly. Budget allocated to the national pride
projects can't be transferred to any projects other than the pride programmes.
The budget also has a programme to integrate various funds managed by the
government ministries and other agencies.
Social security
boost
FM Sharma has brought down the eligibility
age for the senior citizen's allowance to 68 years from existing 70 years.
Senior citizens receive allowance of Rs. 4000 a month. However, he said that
the government would honour those who announce not to take the facility.
He reiterated the previous policy of
integrating various social security schemes. Meanwhile, the funds of the Social
Security Fund will be utilised for the treatment of the workers, education of
their children and insurance of their families. The funds will also be
mobilised to business and vocational training, as well as infrastructure
investment.
About Rs. 134 billion is allocated for
social security programmes for senior citizens, single women, people with
disability, Dalit senior citizens, minorities on the verge of extinction,
children under 5 years of age in 25 districts with lowest Human Development
Index, and Dalit children.
Published in The Rising Nepal daily on 30 May 2022.
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