Money & Finance
Deputy Prime Minister and Finance Minister Bishnu Paudel has scaled down the current budget by 14 per cent or Rs244 billion to Rs1.549 trillion.
His predecessor Janardhan Sharma had presented a huge budget of Rs1.793 billion based on an ambitious revenue goal just as the country was battling the economic crisis brought along by the Covid-19 pandemic.
Presenting a report on the budget’s half-yearly review on Sunday, FM Paudel informed the House of Representatives that the financial statement for the fiscal year 2022/23 had been scaled down to Rs1.549 trillion.
He suggested that any funds not used at this time be forwarded to the Ministry of Finance.
He has estimated the current expenditure at Rs1.021 trillion and the capital expenditure at Rs313 billion and Rs214 billion or slightly more than 93 per cent for financial management.
Of the total budget, the capital expenditure is estimated at Rs313.85 billion, while Rs214 billion of the allocation will be spent on financial arrangements.
The government expects to meet Rs1.341 trillion of the total expenditure through revenue, internal debt, and Rs38.45 billion from foreign grants and Rs170 billion in foreign loans.
The revenue collection has shrunk to its lowest level in 50 years. The government has a Rs139 billion overdraft.
FM Paudel has also revised the revenue target by 12 per cent from Rs1.341 trillion to Rs1.244 trillion for this fiscal.
There was an issue in the balance sheet due to negative revenue growth, he reported. “We have chosen a policy of eliminating non-essential expenses due to resource crunch.”
Consequently, Paudel warned: “the country cannot meet an 8 per cent growth projected in the budget.”
Robust interagency coordination between the customs administration and security services will be implemented to control the smuggling of goods across the border, the finance minister said, reading the budget review repo“t.
“Regular monitoring, testing, and investigative processes will facilitate the timely collection of revenue,” the review budget reads, assuring improved tax inspection and investigation as well as customs post-clearance audit.
Areas of possible revenue leakage would be identified through rigorous monitoring, Minister Paudel said. "Those responsible will be brought to justice, and lost funds will be recovered."
