Budget resized to 90.4%; trade deficit falls by 6.1%

Kathmandu / Feb 12: Minister for Finance Dr Yubaraj Khatiwada has informed that the size of the budget of the current fiscal year has been reduced to Rs 1 trillion 385 billion and 963 million considering the fact that only 90.4 percent of the total budget is estimated to be spent.

Speaking at a program to review the budget during the halfway of the fiscal year, Minister Khatiwada stated that the budget has been resized as the total allocated amount may not be spent. Earlier, the government had issued the annual budge of Rs 1 trillion 532 billion and 967 million.

Similarly, a total of Rs 904.46 billion (94.5 %) budget is estimated to be utilized under recurrent expenditure while capital expenditure is expected to be Rs 326.81 (80.1%). Moreover, Rs 154.69 (92.2%) will be spent for financial management.

According to updated estimate, the government is expecting to mobilize Rs 1.132 trillion in revenue and domestic loans while it aims to secure Rs 43.554 billion in foreign grants. To finance the deficit in the budget, Rs 2.09 will be raised as foreign debt. According to him, this has been resized to 95.5% of the earlier version of the budget for this fiscal year.

Of total allocated budget, 27.6 percent has been spent so far, according to Minister Khatiwada which equals to Rs 422.556. During this period, a total of Rs 396.068 has been spent under the recurrent title which accounts for 32.4 percent while only 15.4 percent budget under capital expenditure that equals to Rs 62.766 billion. “Budget expenditure has increased by 6 percent in compared to the same period in the last fiscal year 2018/19.

He also informed that the trade deficit has reduced by 6.1 percent in the last six months. According to him, trade loss in these six months is Rs 637 billion and 410 million. Similarly, remittance has increased by 0.9 percent and reached Rs 447.26 billion.