Budget is realistic, 6% growth target achievable: Finance Minister Paudel
Minister Paudel said that the government has revitalized a sluggish economy and that the budget’s resource allocation and expenditure distribution have been carried out in a pragmatic manner.
KATHMANDU: Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel has claimed that the national budget for the upcoming fiscal year is realistic and that the government’s 6% economic growth target is attainable.
Responding to lawmakers’ queries during Tuesday’s session of the House of Representatives, Minister Paudel said that the government has revitalized a sluggish economy and that the budget’s resource allocation and expenditure distribution have been carried out in a pragmatic manner.
He assured that the allocation of funds has strictly adhered to constitutional mandates, the Functional Analysis Report, and project classification standards. Emphasizing the government’s commitment, Paudel stated that, with few exceptions, the federal government will not allocate funds to projects under three crore rupees.
“There may be exceptional cases where less than three crore has been allocated,” he explained, citing ongoing projects, liabilities requiring payments, federal-only responsibilities, and post-disaster reconstruction initiatives that can be completed with smaller allocations.
He clarified that in such cases, the concerned ministries will authorize the implementation of such projects through provincial and local governments.
Paudel also highlighted a 17% increase in capital expenditure compared to the current fiscal year, signaling a shift toward greater investment in infrastructure and development.
He noted a need to curb the trend of growing recurrent expenditure at the expense of capital spending.
“I firmly believe that the six percent growth target is achievable. It is not beyond our capacity,” said the Finance Minister, asserting confidence in the government’s ability to meet its economic objectives.
