The government has proposed the budget of Rs 285 billion 930 million for the implementation of government policy and programmes for the fiscal year 2066/67 (2009/10).Minister for Finance Surendra Pandey presented the budget at the Legislature-Parliament of the Constituent Assembly ( CA) Sunday.
Recurrent expenditure is estimated at Rs 160 billion 632.4 million and capital expenditure at Rs 106 billion 284.8 million, of the total expenditure.
Principal payment is estimated to be Rs 19 billion 12.8 million.
The proposed expenditure is 33.87 % higher than that of FY 2008/09. Increase in capital expenditure is 44.98 %, recurrent 31.58 and principal repayment 4.53 %, as per the nature of expenditure.
Review of Budget Implementation of FY 2008/09
According to the revised estimates, GDP growth rate is likely to stand at 3.8 % at basic price and 4.7% at producers’ price and annual average inflation to surge by 13%.
Export and import is estimated to go up by 28.6% and 12% as compared to same period previous year.
On other hand, trade deficit will widen by 28.2 % and remain at Rs 208 billion 510 million. Of the total trade deficit, India alone accounts for 57.3 %.
As of mid-May 2009, the gross foreign exchange reserves stood at Rs. 282 billion 330 million which is adequate to finance merchandise and service imports of 10 months.
Balance of payment is expected to register a surplus of Rs 30 billion at the end of the FY 2008/09.
Meanwhile, total government expenditure is estimated to remain at Rs 213 billion 578.3 million. The share of recurrent expenditure is Rs 122 billion 57.16% of total expenditure, capital expenditure 34.32% and repayment of principles and interest 8.52%.
Revenue collection is likely to stand at Rs 142 billion 211.3 million. This is 32.14% higher than compared to actual amount in the FY 2008/09.
As of mid July 2009, a foreign aid commitment of Rs. 47 billion 856.4 million has been made in the FY 2008/09 as compared to Rs 34 billion 60.8 million in the FY 2007/08.
Total liability increased to Rs 5 billion 970 million, but has been paid. Rs 400 million was originally allocated for debt cancellation.
Rs 4 billion 550 million was allocated as payment of 7 years lump sum pension amount to 5,605 employees who retired under the Voluntary Retirement Scheme.
Likewise, Rs 500 million was released as subsidy to fertiliser, although such amount was not provisioned in the budget at the beginning.
The Finance Minister has outlined the government's priorities to conclude the peace process, draft the new constitution on the basis of national consensus and expedite the economic development through state restructuring.
“The porposed budget for the FY 2066/67 is based on the government priorities of the three-year interim plan,” he said.
The finance minister said the government will take initiatives to forge consensus among the political parties, ensure the rule of law, constitutional supremacy and good governance by ending the impunity culture and anarchic activities.
Minister Pandey underscored the need to move forward by forging consensus among the political parties for socio-economic development and economic growth.
"We could not pay enough attention towards the economic development for a long time due to our concentration on political change. Many countries in the world with same economic situation have taken a giant leap forward," said Minister Pandey, adding it is the indispensable to move ahead for economic development by joining hands with all the political parties.
Source: Ekantipur
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