May 29: Minister for Finance Bishnu Prasad Paudel has introduced the budget for the upcoming fiscal year (FY 2021/22) with a plan to spend a total of Rs 1,647.57 billion. 
Out of the total budget, Rs 678.61 billion has been allocated for recurrent expenditures, Rs 374.26 billion for capital expenditure, Rs 386.71 billion for fiscal transfer and Rs 207.97 billion for financing. 
To pay for its spending, the government has announced that it will collect Rs 1,024.9 billion in revenues and Rs 63.37 billion in foreign grants. For the deficit financing, Finance Minister Poudel said that the government will mobilize Rs 309.29 billion in foreign loans and Rs 250 billion in domestic borrowing.  

The total spending amount is nearly 11.72 percent higher than the government’s budget of Rs 1,474.64 billion for the current fiscal year (FY 2020/21). 
The spending includes a significant portion of allocation on healthcare, vaccination and other measures to combat Covid-19. Similarly, Finance Minister Paudel also announced a significant raise on social security allowances.

The budget was issued on May 29 through ordinance as the House of Representatives is currently dissolved.