Kathmandu, May 28
Finance Minister Dr. Prakash
Sharan Mahat is to present the budget of the coming fiscal year 2023/24 at the
joint session of the Federal Parliament on Monday as per the constitutional
provision to announce the estimates of government income and expenditure on
Jestha 15 (end of May) every year.
The size of budget for the next
year would be around Rs. 1688 billion, as per the ceiling the National Planning
Commission (NPC) set earlier in February this year. As per the Economic
Procedures and Financial Accountability Act-2076, the planning body should set
the ceiling of the budget by Magh 15 (end of January) every year. It takes into
account the estimates of the availability of resources and expenditures for the
next three years while setting the limit for the budget.
The size of next year's budget is
going to be around 9 per cent larger than the budget of the current FY 2022/23
- Rs. 1549.99 billion (adjusted budget size from the initial announcement of
Rs. 1793 billion).
Presenting the Principles and
Priorities of the Budget, FM Dr. Mahat had said that he would accord priority
to agriculture, industry, education, physical infrastructure and large projects
with strategic importance. Increasing production and productivity in
agriculture and industry sector to make the country self-reliant and ensuring
food security as well as effective implementation of land-use policy will get
priority in the budget.
Similarly, promotion of
start-ups, information technology, hydroelectricity, and development and export
of goods and services that have high comparative advantage and competitive
benefits are also in the priority.
Other areas of priority are
increasing access and quality of education, enhancing people's access to basic
health services, control of pandemic, treatment and immunization.
In infrastructure,
Kathmandu-Terai Expressway, East-West Highway, North-South Corridor, and
connectivity to all centres of local bodies are the areas of priority.
Likewise, to support in further revival of tourism sector promotional
programmes would be announced. Minister Dr. Mahat had expressed his commitment
that there would be no shortage of funds for the national pride projects.
Similarly, investment-friendly
environment creation, reforms in service delivery, promotion of good governance
and zero tolerance against corruption have also got their way into the
priorities of the budget.
However, FM Dr. Mahat would face
shortage of resources to implement the programmes and projects as the country
is reeling from the economic crisis and government is facing a tough challenge
even to manage funds to run everyday activities. By Saturday, the government
has collected Rs. 824.6 billion revenue which is just 56.53 per cent of the
total annual target of Rs. 1458.6 billion. But the government expenditures have
reached Rs. 1098.2 billion creating a gap of Rs. 274 billion in its income and
expenditures. Meanwhile, the capital expenditure has remained meager with just
35.6 per cent (Rs. 135.4 billion) of the annual target of Rs. 380.3 billion.
However, through the mid-term
review of the budget, finance ministry had lowered the revenue estimates to Rs.
1244 billion. The government is running short of funds even to implement its
adjusted budget of Rs. 1549 billion.
Meanwhile, according to the
National Statistics Office (NSO), the country will achieve the economic growth
of only 1.6 per cent with major economic sectors like manufacturing,
construction, and wholesale and retail trade witnessing negative growth of more
than 2 per cent. It means there will be negative impact on employment,
production and contribution to the economic growth of the country.
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