In a mid-term review of the annual budget, the Nepal Government has reduced the total budget to NPR 1.38 trillion against NPR 1.53 trillion, for the Fiscal Year (FY) 2075-76 (2019/20).
Finance Minister Yubaraj Khatiwada has announced that the total budget for current FY has been reduced to NPR 1 trillion 385 billion and 963 million. Earlier, the Nepali Government had announced the annual budget of NPR 1 trillion 532 billion and 967 million.
The government’s decision to resize the budget is attributed to the fact that only 90.4 % of the total budget is estimated to be spent.
|Details||Revised Amount||Earlier Amount|
|Capital Expenditure||NPR 326.81 billion (80.1%)||NPR 408 billion|
|Revenue Collection Target||NPR 1.05 trillion (95.6%)||NPR 1.1 trillion|
|Recurrent Expenditure||NPR 904.46 billion (94.5%)||NPR 957 billion|
|Financial Management||NPR 154.69 billion (92.2%)||NPR 167.8 billion|
|Total Budget||NPR 1 trillion 385 billion and 963 million (90.4%)||NPR 1 trillion 532 billion and 967 million|
The revision of the revenue collection target has emerged amid the government’s failure to meet the expected target.
So far, the Nepali Government has collected revenues worth NPR 433.15 billion by mid-January, against the target of NPR 537 billion. Revenue collection over the first six months stood at a mere 39% of the targeted amount of more than NPR 1.1 trillion for this fiscal year.
According to Minister Khatiwada, 27.6% (NPR 422.556 billion) of the total allocated budget has been spent so far. A total of NPR 396.068 billion (32.4 %) has been spent under the recurrent expenditure, while only NPR 62.766 billion (15.4%) under capital expenditure.
Other Notable Stats During Review Period:
This is the second consecutive year that the Nepali Government has revised the annual budget 2075/76.