September 11: The incumbent government has allocated Rs 1.63 trillion for the current fiscal year (FY 2021/22) through the replacement bill tabled at the parliament meeting on Friday, September 10.
The replacement bill issued in place of the ordinance budget announced by the previous government led by KP Sharma Oli is less than the previous budget by almost Rs 15 billion.
Finance Minister Janardan Sharma presented the replacement bill by revising the ordinance budget and downsizing it by Rs 14.74 billion. The Oli government had announced a budget of Rs 1647.57 billion on May 29.
Finance Minister Sharma presented an estimate of income and expenditures of the current fiscal year with revisions in the third meeting of the House of Representatives (HoR).
The bill incorporates the issues relating to the reduction of multi-dimensional poverty, securing a high economic growth rate and adopting and promoting inclusive economic policy as salient features of the budget, reports the state-owned national news agency RSS.
Out of the total budget, the government has allocated Rs 677 billion (41.42 percent) for current expenditure and Rs 378 billion (23.16 percent) for capital expenditure.
Likewise, Rs 189 billion (11.60 percent) has been allocated for fiscal management and Rs 387 billion (23.72 percent) for handover to local and provincial levels.
The government is expected to raise Rs 1050.08 billion from revenue collection while Rs 59.9 billion will be received from foreign grants.
The replacement bill has reduced portions of domestic and foreign loans by approximately Rs 37 billion and while the current expenditure has been slashed by 10 percent.
Finance Minister Sharma announced that an arrangement has been made to form a think-tank at the Finance Ministry to study, research and analyze issues related to budget.