KATHMANDU: The government has downsized the budget for 2020-21 by Rs 130 billion through the mid-term review of the budget today.
Finance Minister Bishnu Poudel informed that the size of the budget for the current fiscal year has been reduced from Rs 1.474 trillion to Rs 1.355 trillion.
Similarly, the government has estimated that 91 percent of the initial target will be spent on recurrent expenditure, 80 percent on capital expenditure and 85 percent on financial management.
Former Finance Minister Yubaraj Khatiwada had reduced the size of two budgets. Following Khatiwada, Poudel also revised the size of the budget.
The government has estimated Rs 914 billion for current expenditure, Rs 283 billion for capital expenditure and Rs 146 billion for financial management this year.
The Ministry of Finance has also revised the revenue target. Amending the initial target of the budget to collect Rs 10.11 trillion as revenue, the Ministry has set new target to collect Rs 959 billion revenue this year.
Stating that the target of 7 percent economic growth mentioned in the budget will not be met, the Finance Minister said that the country will achieve average growth this year. However, the government has not set revised growth target.