First Business News Portal in English from Nepal
KATHMANDU: The expenditure of Nepal’s federal government is projected to grow by more than five folds in the next 20 years.
A study carried out by the National Planning Commission (NPC) shows that the country’s total expenses will reach Rs 9.543 trillion in the fiscal year 2043/44, a jump from Rs 1.793 trillion of the current fiscal year. According to the NPC, the government’s total expenses will stand at Rs 2.142 trillion in 2026/27, Rs 2.944 trillion in 2030/31 and Rs 5.218 trillion in 2036/37.
The NPC has projected that there will be a massive rise in the recurrent expenditure of the federal government in the stipulated time. As per the estimation, the recurrent expenditure will reach at Rs 1.556 trillion in 2026/27, Rs 2.053 trillion in 2030/31 and Rs 3.674 trillion in 2036/37, while it will reach to Rs 6.522 trillion in the next two decades.
Compared to the regular expenditure, the capital expenditure will grow at a crawling pace, says the NPC. The capital expenditure will remain at Rs 409 billion in fiscal year 2026/27, Rs 616 billion in 2030/31, Rs 1.136 trillion in 2036/37 and Rs 2.329 trillion in 2043/44.
However, in each of these projected years, the government will have to face a budget deficit due to a low amount of revenue collection. According to the NPC’s projection, the government revenue collection will cover only 75 percent of the total expenses in 2043/44.
Your email address will not be published. Required fields are marked *
Save my name, email, and website in this browser for the next time I comment.
© Copyright 2020. FiscalNepal.com. Website Design and Developed by Genesis Web Technology