Kathmandu: The government has proposed a total budget of Rs 1.964 trillion for the upcoming fiscal year 2082/83. Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel presented the annual revenue and expenditure estimates during a joint session of the federal parliament on Thursday.
Out of the total allocation, Rs 1.180 trillion (60.1%) has been set aside for recurrent expenditure, which covers day-to-day government operations. Similarly, Rs 407.89 billion (20.8%) has been allocated for capital expenditure to fund development projects. An additional Rs 375.24 billion (19.1%) will go towards financing, which includes debt servicing and other financial liabilities.
This proposed budget represents a 5.6% increase compared to the current year’s allocation and an 18.2% rise from the revised estimates.
In a bid to strengthen federalism, the government has also earmarked Rs 417.83 billion for fiscal transfers to provincial and local governments.
To finance the estimated expenditure, the government plans to collect Rs 1.315 trillion through internal revenue sources. It also expects to receive Rs 53.45 billion in foreign grants. The remaining Rs 595.66 billion will be managed through borrowing — Rs 362 billion from domestic sources and Rs 233.66 billion from foreign loans.