With an estimation of scaling economic growth by five percent, the government has released annual budget of Rs. 168 billion and 995.6 million for the new fiscal year 2007/08. Constituent Assembly (CA) polls, reconstruction, poverty alleviation, rehabilitation, industrial development are some major areas the government has prioritized in new budget.
In his nearly 2 hour long budget speech in Interim Legislature Parliament on Thursday, Finance Minister Dr. Ram Sharan Mahat said that of the total expenditures to be made in the new fiscal year, Rs. 98 billion 172.4 million and 91 thousand has been earmarked for recurrent expenditure, Rs. 55 billion 261.6 million and 82 thousand for capital expenditure and Rs. 15 billion 561.4 million and 27 thousand for repayment of principal amount.
The budget speech said that of total budget, Rs. 93 b 743 m and 45 thousand rupees has been allocated for general administration and Rs. 75 b 252.5 m and 55 thousand for Development programmes.
The government has estimated to generate Rs. 99 b 605.9 m and 56 thousand rupees from current sources of revenue, Rs. 27 b 460.9 m and 14 thousand through foreign grant and Rs. 17 b 367.4 m and 30 thousand through foreign loan.
Minister Mahat presented five point objective of new fiscal budget. He said sustainable peace, stability and strengthening of the democratic System, poverty alleviation and economic prosperity, investment promotion, human development, reconstruction, rehabilitation and relief would be the objectives of the budget.
The government is to spend Rs. 3.5 billion for elections and election related security and Rs. 9.56 billion for strengthening police force. The budget has given continuity to Village Development Committee block grant of Rs. 1 million for the construction of economic infrastructure.
Rs. 5 billion and 820 million has been allocated for the development of agriculture sector, and Rs. 3.99 billion has been allocated for the expansion of such irrigation facilities. Similarly, allocation of Rs. 1.05 billion has been made for the expansion of the alternate energy. New budget has allocated Rs. 9.34 billion to develop road connectivity throughout the country and Rs. 7.65 billion in the hydro electricity sector for the next year.
The government has allocated a sum of Rs. 2.13 billion for the Ministry of Information and Communication (MoIC). Expansion of telephone and installation of tele-center, and installation of radio, television transmission are the major focuses in the sum allocated for MoIC.
The sum of Rs. 51 billion has been allocated for the programmes such as rural infrastructure, capacity development, grant to local bodies, people’s participation- based programmes.
"Intensive program on poverty alleviation will be carried out in 40districts including districts of Karnali Zone, which are considered backward on the basis of Human Development Index" the budget speech said.
The budget has allocated Rs. 28.39 billion for the Ministry of Education and Sports. This is an increase of Rs. 5.38 billion as compared to the allocation of the last year's budget.
Similarly, the government has increased the salary of civil servants by 27 percent which also includes 10 percent increment in the allowance. The budget has remained silent about the facilities for King and Royal family.
The budget unveiled for new fiscal year is higher by 17.4 percent as compared to total allocation of Fiscal Year 2006/07 and 28.2 higher than the revised estimate of the same period. The revised expenditure as compared to estimate is 22.2 higher in recurrent expenditure, 51.9 in capital expenditure, and 2.8 in repayment of principal.
----------------------------------------
Visit www.mof.gov.np for detail budget
|
Set as homepage 
|
Add to favorites 
|
