Nepal’s economy, already struggling with the impacts of the pandemic and global geopolitical tensions, is facing a bleak and uncertain future. This is exacerbated by frequent government changes, widespread corruption, and the departure of young people who feel there is no future for them in the country. The budget presents either a new opportunity or a potential crisis. Today is Budget Day in Nepal, as mandated by the constitution.
As we aim to ensure that every citizen understands how their money and taxes are being utilized, and to enhance accountability and transparency, here is the live coverage of Budget Day.
The government has earmarked Rs 436 billion to pay the interest and for the repayment of the principal on public debt for the next fiscal year.
“The inflated revenue size and unrealistic target of economic growth invite instability in the economy,” said Professor Ram Prasad Gyanwali, an economist and former head at the Central Department of Economics, TU.
As a matter of fact, the government initially allocated a budget of Rs 1.751 trillion in the current FY 2023/24, subsequently reducing it by 12.62 percent to Rs 1.530 trillion through a mid-term review due to sluggish revenue collection. With only 55.43 percent of the revenue collection target achieved thus far, standing at Rs 788.47 billion against the set target of Rs 1.422 trillion, the burgeoning public debt has surged to Rs 2.388 trillion by mid-March.
While Minister Pun emphasized the government’s adherence to the prescribed limit of Rs 1.8 trillion, Prime Minister Dahal’s proposed budget of Rs 1.9 trillion for the upcoming fiscal year.
DID YOU KNOW? The word budget has been derived from the French word Bougette. The word Bougette literally means ‘the leather bag’.
