Government Introduces a Budget with a Deficit of NPR 547 Billion

The government has introduced a budget with a deficit of nearly NPR 547 billion for the upcoming fiscal year. This budget, which is 6.2% larger than the current fiscal year's budget, amounts to a total of NPR 1.86031 trillion. Finance Minister Barshaman Pun announced the budget, highlighting the government's plans and allocations for the fiscal year.

Out of the total budget, NPR 1.14066 trillion (61.31%) is allocated for recurrent expenditure, NPR 352.35 billion (18.94%) for capital expenditure, and NPR 367.18 billion (19.74%) for financial management.

However, the government has outlined the sources to cover these expenditures. It plans to generate NPR 1.2603 trillion from revenue and NPR 52.33 billion from foreign grants. Despite these sources, there remains a deficit of NPR 547.67 billion. To address this shortfall, the government plans to borrow NPR 217.67 billion from external sources and NPR 330 billion from internal sources.

The budget's significant increase in size is aimed at driving economic growth and development. The recurrent expenditure will cover the ongoing costs of running the government, including salaries, pensions, and operational costs. The capital expenditure is focused on infrastructure development, including roads, bridges, and other critical infrastructure projects. The allocation for financial management includes servicing debt and other financial obligations.

Finance Minister Pun emphasized that this budget aims to balance economic growth with financial stability. The increased allocations for infrastructure development and public services are expected to stimulate economic activities and create job opportunities. The budget also reflects the government's commitment to improving public service delivery and ensuring that economic benefits reach all segments of society.

In conclusion, while the budget introduces substantial expenditures to promote economic development, it also highlights the significant deficit that needs to be managed through strategic borrowing and efficient revenue generation. The government's approach aims to foster sustainable economic growth while addressing immediate financial challenges.