Kathmandu: The government has released a Rs 1.64 trillion budget for the fiscal year 2021-22, which is heavily distributed.
The government intends to spend Rs 678.61 billion on recurrent expenditures out of the overall budget. Similarly, Rs 347 billion has been set aside for capital expenditure and Rs 207 billion has been set aside for financial provision.
A tax collection target of Rs 1,024 billion has also been set by the government. Similarly, the government will seek Rs 63 billion in international grants and Rs 309 billion in foreign loans. Domestic loans worth Rs 250 billion are expected to balance the budget’s expenditures and sources.
The government led by Prime Minister KP Sharma Oli, passed the budget by ordinance with a focus on battling the Covid-19 pandemic, giving relief to pandemic-affected citizens and companies, and increasing social security allowances.
While the health, education, and social security sectors have received top priority, Finance Minister Bishnu Prasad Poudel has also allocated funds to minor and dispersed projects.
The budget has also prioritized the concerns of the private sector by abolishing the electricity demand tax and providing low-interest refinancing to pandemic-affected firms.
Meanwhile, the government of KP Sharma Oli has decided to cancel the Local Infrastructure Development Partnership Program.
The administration has set a target of 6 percent economic growth for the upcoming fiscal year.