Kathmandu. The government has brought a deficit budget of about Rs 600 billion. A deficit budget of Rs 595.66 billion has been brought to affect the flow of credit to the private sector.
The two-thirds majority government led by the Nepali Congress (NC) and the CPN (UML) has unveiled a budget of Rs 1,964.11 billion for the next fiscal year. Out of the total allocation, Rs 1,180.98 billion has been allocated for current, Rs 407.89 billion for fiscal management and Rs 375.24 billion for financial management.
The government has also projected to achieve 6 percent economic growth rate by spending this budget in the next fiscal year and reduce inflation to 5.5 percent.
Of the total allocation, 60.1 per cent is for current expenditure, 20.8 per cent for capital expenditure and 19.1 per cent for financial management.
The government has set a target of raising Rs 53.45 billion from foreign grants. The government has said that it will raise the loan of Rs 595.66 billion which is insufficient. Of this, Rs 233.45 billion will be collected from foreign loans and Rs 365 billion from internal loans. Raising Rs 365 billion in internal debt risks impacting economic growth due to contraction in credit expansion to the private sector.
The new budget presented by the government is 5.6 percent larger than the current fiscal year’s budget and 18.2 percent larger than the revised budget.
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