The government of Nepal has outlined a comprehensive budget for the fiscal year 2081/82, totaling Rs. 18 Kharba 60 Arba 30 Crores. This budget is supervised by Finance Minister Barshaman Pun, who has meticulously allocated funds across various sectors to ensure balanced and sustainable growth.
Budget Allocation Overview
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Recurrent Expenditure:
- Amount: Rs. 11.40 Kharba
- Percentage: 61.31%
- Purpose: This portion of the budget is designated for managing ongoing operational expenses of the government, which include salaries, pensions, and other administrative costs. This ensures the smooth running of government services and infrastructure.
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Capital Expenditure:
- Amount: Rs. 3.52 Kharba
- Percentage: 18.95%
- Purpose: Capital expenditure is intended for development projects such as infrastructure, schools, hospitals, and other long-term investments. These projects aim to bolster the economic foundation of the country and improve the quality of life for its citizens.
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Financial Management Initiatives:
- Amount: Rs. 3.67 Kharba
- Percentage: 19.65%
- Purpose: This allocation is directed towards various financial management initiatives, including debt servicing and other financial obligations. It aims to ensure financial stability and manage the country’s debt effectively.
Revenue Generation Plans
To fund these expenditures, the government has set ambitious revenue targets:
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Tax Revenue:
- Target: Rs. 12 Kharba 60 Arba 30 Crores
- Current Fiscal Year Target: Rs. 12 Kharba 48 Arba 62 Crores
- Details: The government plans to generate a substantial portion of its revenue from various tax sources. These include income tax, VAT, excise duties, and customs duties.
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Borrowing and Grants:
- Internal Borrowing: Rs. 3 Kharba 30 Arba
- External Borrowing: Rs. 2 Kharba 17 Arba 67 Crores
- Foreign Grants: Rs. 52 Arba 33 Crores
- Details: In addition to tax revenues, the government will also rely on internal and external borrowing, as well as foreign grants, to meet its budgetary needs. Internal borrowing will be sourced from domestic financial markets, while external borrowing and grants will come from international financial institutions and donor countries.
Economic Objectives
The government has also set clear economic goals for the upcoming fiscal year:
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Economic Growth:
- Target: 6%
- Focus: The aim is to achieve a 6% economic growth rate, focusing on sustainable development across various sectors, including agriculture, manufacturing, and services. This growth target reflects the government’s commitment to fostering economic expansion and improving living standards.
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Inflation Control:
- Target: 5.5%
- Measures: The government will implement measures to keep inflation at a stable rate of 5.5%. These measures include monetary policies to control money supply and fiscal policies to manage public spending and taxation effectively. The goal is to maintain price stability, which is crucial for protecting consumers' purchasing power and ensuring economic stability.
Budget Allocation Table
| Expenditure Category | Amount (Rs.) | Percentage of Total Budget |
|---|---|---|
| Recurrent Expenditure | 11.40 Kharba | 61.31% |
| Capital Expenditure | 3.52 Kharba | 18.95% |
| Financial Management Initiatives | 3.67 Kharba | 19.65% |
| Total | 18.60 Kharba | 100% |
Revenue Generation Table
| Revenue Source | Target Amount (Rs.) |
|---|---|
| Tax Revenue | 12.60 Kharba 30 Crores |
| Internal Borrowing | 3.30 Kharba |
| External Borrowing | 2.17 Kharba 67 Crores |
| Foreign Grants | 52 Arba 33 Crores |
In conclusion, Nepal’s budget for FY 2081/82 is a balanced mix of managing operational costs, investing in capital projects, and maintaining financial stability through prudent financial management and ambitious revenue generation strategies. The government’s focus on sustainable economic growth and inflation control underscores its commitment to improving the overall economic health of the country.