Deuba-led govt introduces a revised budget of Rs 1.632 trillion (Major Highlights)

KATHMANDU: The government has tabled a new budget for the fiscal year 2021-22 amending the earlier ordinance budget introduced by the outgoing KP Oli Government.

The Finance Minister tabled the budget substitution bill amid the obstruction by the lawmakers of the main opposition CPN UML on Friday afternoon.

The amended budget has a size of Rs 1.632 trillion including the recurrent expenditure of Rs 677 billion, capital expenditure of Rs 371 billion and Rs 189 billion has been allocated for fiscal management. Similarly, the government has earmarked Rs 387 billion for fiscal transfers for the provincial and local levels.

Earlier, the erstwhile Finance Minister Bishnu Poudel presented an annual budget of Rs 1.647 trillion in May, earlier this year. Of the total budget, Rs. 678 billion was allocated for recurrent expenditure while Rs 347 billion was to be used for capital expenditure. The KP Oli-led government allotted Rs 279 billion for fiscal management through the ordinance budget.

Major Highlights

-Growth target set at 7% for FY 2021-22

-The government has reduced the budget size by Rs 15 billion to Rs 1.632 trillion.

-The government has reduced the proposed internal and foreign debt by Rs 37 billion.

-Families of martyrs killed in different political protests to get Rs 3,000 a month allowance

-Patients of cancer, kidney diseases and paralysis due to spinal cord injury Rs 5,000 a month

-10 free lunch spaces for the poor in Kathmandu

-Rs 10,000 grant to each of 500,000 poor families whose bread-winners had lost livelihood opportunities due to the Covid-19 pandemic

-The government has vowed that the Melamchi Water Supply Project closed due to floods and landslides would start operation and deliver water to Kathmandu by mid-April 2022.