Govt unveils Rs 2.124 trillion budget for FY 2083/84 (full text)
Of the total allocation, Rs 1.270 trillion has been earmarked for recurrent expenditure, accounting for 59.8 percent of the budget.
KATHMANDU: The government has allocated a total budget of Rs 2.124 trillion (Rs 21.24 trillion in Nepali numbering system) for the fiscal year 2083/84, Finance Minister Swarnim Wagle announced while presenting the annual budget at a joint session of the Federal Parliament on Friday.
Of the total allocation, Rs 1.270 trillion has been earmarked for recurrent expenditure, accounting for 59.8 percent of the budget.
Capital expenditure has been set at Rs 431.10 billion, representing 20.3 percent of total spending, while Rs 422.64 billion, or 19.9 percent, has been allocated for financial management.
The proposed expenditure is approximately 25 percent higher than the revised estimate for the current fiscal year.
To finance the budget, the government expects to mobilize Rs 1.405 trillion from revenue collection and Rs 61.74 billion from foreign grants. The remaining Rs 657.29 billion financing gap will be met through borrowing.
Of this amount, Rs 247.28 billion is projected to come from foreign loans, while Rs 410 billion will be raised through domestic borrowing.
The finance minister said that although the government plans to mobilize Rs 410 billion in domestic loans, Rs 245.89 billion will be used to repay principal on existing domestic debt, resulting in net domestic borrowing of Rs 164.11 billion.
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Under the fiscal transfer framework, and based on recommendations from the National Natural Resources and Fiscal Commission, the government will provide Rs 61.50 billion in fiscal equalization grants to provincial governments and Rs 90.20 billion to local governments.
To support infrastructure projects, provinces will receive Rs 4.60 billion in matching grants, while local governments will receive Rs 8.93 billion. In addition, special grants amounting to Rs 3.82 billion for provinces and Rs 9.40 billion for local levels have been allocated.
The federal government will also distribute conditional grants worth Rs 49.72 billion to provincial governments and Rs 206.08 billion to local governments for the implementation of federal projects.
Furthermore, provincial and local governments are expected to receive a combined Rs 175 billion through revenue-sharing arrangements.
Overall, the government projects that more than Rs 600 billion will be mobilized at provincial and local levels through revenue sharing, royalties, and various fiscal transfer mechanisms during the upcoming fiscal year.
