Govt presents budget; Rs 140 billion for reconstruction, salary of govt. employees and social security allowance increased

Kathmandu / May 28: The government has presented the total budget of one trillion 48 billion 921 million 324 thousand rupees for the fiscal year 2073-74 BS (2016-2017).

In a meeting of the Legislature-Parliament today, Finance Minister Bishnu Prasad Poudel stated that of the allocated budget, Rs 617 billion 164 million 129 thousand (58.9 percent) has been allocated towards current expenditure and Rs 311 billion 146 million 325 thousand (29.7 percent) towards the capital expenditure.

In the budget presented one and half months before the starting of the new fiscal year, Rs 119 billion 810 million 900 thousand (11.4 percent) has been allocated towards the financial management. The estimated expenditure in the new fiscal year is 28 percent more than that of the current fiscal year and 49.6 percent more than the revised estimate.

Finance Minister Poudel said that of the estimated expenditure for the upcoming fiscal year, Rs 565 billion 896 million 500 thousand will be met through revenue, Rs 100 billion through principal returns and Rs 110 billion 890 million and 11 thousand through the foreign grant assistance and there will be deficit of Rs 366 billion 128 million and 443 thousand.

Similarly, Rs 195 billion 715 million and 737 thousand will be managed through the foreign loan assistance to bridge the deficit.

Likewise, there will be a net deficit of Rs 170 billion 412 million 706 thousand in the mobilisation of revenue and foreign assistance. This deficit will be addressed thorough the internal loans of Rs 111 billion and more Rs 59 billion 412 million and 700 thousand will be used from the cash reserve of the current fiscal year, the Finance Minister said

The government, in its annual budget estimates for the Fiscal Year 2016/2017, has allocated Rs 140.66 billion for the post-earthquake reconstruction efforts and rehabilitation operation.

Finance Minister Bishnu Prasad Poudel announced so while reading out the budget statement for the upcoming fiscal at the meeting of the Legislature-Parliament today.

Minister Poudel said that the government, underscoring the reconstruction operation, has allocated the amount after estimation on annual revenue and expenditure.

Stating that the need of the hour was to fight against poverty and backwardness which were against the social justice, Poudel asserted that the budget was aimed at attaining economic growth and prosperity.

The budget, first since the promulgation of new constitution on September 20, 2015, has been prepared after soliciting suggestions from the parliamentarians, according to Minister Poudel, who assured that that adequate budget has been allocated for implementation of federal structure as stipulated in the new constitution.

“The Government has allocated the budget in view of holding elections at all level as per the spirit of the constitution and to forge political consensus in local bodies to hold election at the local bodies by mid-December, 2016,” according to Minister Poudel.

25 per cent hike in govt employees’ salary

The government has announced 25 per cent hike in the existing salary of the government staffers.

The budget, first since the promulgation of the new constitution on September 20, 2015, has provisioned the increment as per the annual estimation of revenue and expenditure of the government for 2016/017. The budget tabled last year had not revised the salary for the civil servants.

Social security allowance increased twofold

The government has decided to increase the social security allowance by hundred percent from the upcoming fiscal year.

According to the budget for the fiscal year 2016-17, the social security allowance has increased by twofold.

Single women, senior citizens above 70, people from the marginalised community and fully incapacitated are entitled to the social security allowance. They are getting Rs 1,000 including medical allowance monthly.

Likewise, budget for ‘Let Us Build Our Village Ourselves’ programme has been doubled. The programme was first lunched by the CPN (UML)-led government in 2052 BS.

Similarly, the amount of the MP’s Development Fund has been increased to Rs 30 million. As per the budget, journalists will be given 50 percent discount in medical treatment in government hospitals and house rent allowance for lawmakers has also been increased.

This is the first budget after the new constitution was promulgated on September 20, 2015. It may be noted that a deadline of Jestha 15 has been set in the constitution for the presentation of the budget estimates. Earlier today, the Council of Ministers approved the budget to be presented before the parliament.

There have been several years when the capital spending and project construction have not witnessed progresses owing to protracted political instability. The political turmoil has affected the construction of physical infrastructure and outcomes of the development projects causing repeated allocation of budget for the same projects.

For no effective inter-ministerial coordination the state treasury is being spent without any development outcomes in concrete.

The government-unveiled policy and programmes for the coming fiscal year has come up with ambitious projects such as construction of earthquake-devastated structures within five years, holding civic polls in coming December and production of 10,000 MW of electricity within 10 years.

The budget has been brought being based on ambitious plans. The private sector had welcomed the government’s policy and programmes while the main opposition party criticised it by terming it as a ‘baseless document’ that cannot be implemented.

The present government headed by the second largest party, CPN (UML), constitutes the third largest party, CPN (Maoist Centre), and the fourth largest RPP Nepal among fringe parties.

The UML leaders have declared that the budget was crafted in a way that reflects the earlier budget the UML-led nine-month old government introduced in 2051 BS which had become one of the most popular budgets in country’s history.

Meanwhile, the lawmakers’ representing the Madhesi Front affiliated with the agitating Federal Alliance were not present at the parliamentary session during the presentation of the budget. RSS