Kathmandu: The government has revised the budget for the current fiscal year through its half-yearly review, reducing the total allocation to Rs 1692.73 billion from the previously announced Rs 1860.3 billion. Presenting the revised budget in the House of Representatives (HoR), Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel stated that the new budget estimation is 90.99 percent of the original allocation.

The revised budget includes Rs 1029.3 billion for current expenditure, Rs 299.5 billion for capital expenditure, and Rs 363.93 billion for fiscal management. According to Minister Paudel, Rs 1476.26 billion will be financed through government resources, including revenue collection and internal loans. Additionally, Rs 36.62 billion will come from foreign grants, while Rs 180.83 billion will be managed through foreign loans. Under fiscal transfers, Rs 34.89 billion has been allocated to provinces, and Rs 150.26 billion for local governments.

The revised budget also outlines measures to improve budget implementation and resource management. The government has decided not to create new organizations across government offices, regulatory bodies, and public enterprises. Additionally, austerity measures will be enforced to curb unnecessary spending.

Minister Paudel criticized the previous government for violating budget principles, pointing out that projects worth as little as Rs 75,000 were included, despite a Cabinet policy decision not to approve projects under Rs 30 million. He also stated that the Ministry of Health and Population is currently underfunded by Rs 30 billion.

Regarding economic indicators, Minister Paudel highlighted that government expenditure in the first six months of the fiscal year stood at Rs 56 billion, compared to Rs 49.91 billion in the same period last year. He assured that remittance inflows have remained stable, and revenue collection is on track to meet its target. The government has also introduced a computer-based accounting system to enhance public fiscal management.

Following the HoR presentation, Minister Paudel held a press conference at the Ministry of Finance, reiterating the government’s focus on economic reforms, performance-based governance, and ensuring tangible results. The next House of Representatives meeting is scheduled for 1:00 PM on Friday.