Nepal's Government Introduces Budget of NPR 17 Trillion for Fiscal Year 2080/81
The government of Nepal has unveiled its budget for the upcoming financial year 2080/81, amounting to NPR 17 trillion 51 billion 31 million. While this budget is slightly lower than the current fiscal year's allocation of NPR 17 trillion 93 billion 83 billion 73 million, it reflects the government's commitment to efficient financial management and resource allocation.
Allocation Breakdown: Current, Capital, and Financial System
Out of the total budget allocation, 65.20 percent, equivalent to NPR 11 trillion 41 billion 78 million, has been designated for current expenditures. This allocation emphasizes the government's focus on meeting immediate needs and supporting ongoing programs and initiatives. Additionally, 17.25 percent, which amounts to NPR 3 trillion 2 billion 7 billion, has been allocated for capital expenditures, emphasizing the importance of infrastructure development and long-term investments. Furthermore, 17.55 percent, or NPR 3 trillion 7 billion 45 million, has been allocated for strengthening the financial system, highlighting the government's commitment to fostering a robust economic environment.
Comparative Analysis: Lower Than Current Fiscal Year, Higher Than Revised Estimate
The estimated expenditure for the next financial year reflects a 2.37 percent decrease compared to the current fiscal year's allocation. However, it represents a significant 16.37 percent increase compared to the revised estimate, indicating the government's efforts to optimize resource allocation and address the evolving needs of the nation.
Financial Transfers to Provincial and Local Levels
The budget includes an allocation of NPR 4 trillion 80 million rupees for financial transfers to the provincial and local levels. This demonstrates the government's commitment to decentralization and empowering regional authorities to effectively address local needs and foster inclusive development.
Revenue and Foreign Grants: Sources of Expenditure
For the upcoming financial year, the government expects to generate NPR 12 trillion 48 billion 62 crore rupees from revenue sources. Additionally, foreign grants are projected to contribute NPR 49 billion 94 crore rupees. However, due to a shortfall of NPR 4 trillion 52 billion 75 crore rupees, the government plans to secure foreign loans amounting to NPR 2 trillion 12 billion 750 million. This strategy aims to bridge the funding gap and ensure adequate resources to fulfill the country's requirements. In cases where revenue mobilization and foreign aid fall short, the remaining NPR 2 trillion 40 billion will be covered through internal debt.
By formulating this budget, the government of Nepal aims to ensure effective utilization of resources, prioritize key sectors, promote economic growth, and address the diverse needs of the country. This budget allocation reflects the government's commitment to prudent financial management and sets the stage for sustainable development and progress in Nepal.