Budget: Finance Minister unveils annual budget of Rs 1.86 trl for FY 2024/025

Kathmandu / May 28: The government has announced the budget of Rs 1.86 trillion for the upcoming fiscal year 2024/025. Minister for Finance Barshaman Pun unveiled the budget in a joint meeting of the federal parliament this afternoon.

As announced, Rs 1140.66 billion (61.31 percent) has been allocated towards current expenditure while Rs 352.35 billion (18.94 percent) towards capital expenditure. Similarly, Rs 367.28 billion has been allocated for fiscal management title.

The size of the upcoming fiscal year’s budget is 6.2 percent more than the current fiscal year while it is 21.56 percent more than the revised estimation of the budget of the current fiscal year. In the total allocation, Rs 408.87 billion has been allocated for fiscal transfer to the province and local levels.

The major sources of the budget estimation for the upcoming fiscal year include Rs 1260.3 billion from revenue collection and Rs 52.33 billion from foreign aid and Rs 217.67 billion from foreign loan assistance. Likewise, Rs 330 billion would be collected from the internal loan.

Government expects 6 per cent economic growth

Finance Minister Barsha Man Pun has said that the government has estimated 6 per cent economic growth.

Finance Minister Barsha Man Pun revealed this while presenting the annual estimate of income and expenditure for the upcoming fiscal year of 2081/82 at the joint meeting of the federal parliament today.

The inflation is estimated to be 5.5 per cent

Budget: Rs 567 billion for provincial and local governments

he federal government is to allocate Rs 567 billion to the provincial and local governments (PLGs) in the coming financial year 2024/25.

This will be made through fiscal transfer and revenue sharing from the federal budget. According to the budget statement read out by Finance Minister Barshman Pun in the Parliament today, on the recommendation of the National Natural Resources and Fiscal Commission (NNFRC), the federal government has allocated Rs 60 billion for the provinces and Rs 88 billion for the local level towards the fiscal equalization grants. Likewise, conditional grant worth Rs.25.84 billion has been earmarked for the provinces and Rs.28.88 billion for the local level.

Another 6.2 billion rupees have been allocated to the province and 7 billion rupees to the local level towards supplementary grants. In addition, 4.4 billion rupees have been allocated for the province and 8.5 billion rupees for the local level as special grant.

Finance Minister Pun noted that arrangements will be made to transfer conditional, supplementary and special grants based on performance. The government estimates that 159 billion rupees will be transferred to the provincial and local levels as part of revenue sharing.