Mid-term review of Budget: Capital, recurrent expenditures at Rs 50.82bn, Rs 342.36bn respectively

The Ministry of Finance (MoF) has conducted the mid-term review of the budget of the Fiscal Year 2020/21.

The MoF reviewed the budget in the presence of the secretaries of the concerned ministries. As per the information presented in the review program, the capital expenditure is at Rs 50.82 billion (14.40 per cent) and recurrent expenditure at 342.36 billion (36.08 per cent). Similarly, the expenses towards financial management is at Rs. 22.57 billion (13.06 per cent). 

In terms of revenues, the government revenue is Rs 380 billion, foreign grant Rs. 5.61 billion and foreign debt Rs 30.04 billion.

On the occasion, Minister for Finance Bishnu Prasad Poudel said the ministry has been holding discussions to increase the capital expenditure and investment in development work citing that lack of tactical decision and direction and also the inactivity of bodies concerned were the cause of low capital expenditure. He expressed his view that the ministries should coordinate with MoF to increase capital expenditure.

According to MoF, while implementing the budget, budgetary demand, additional demand for release, negligence to abide by the financial procedure and liability, and lack of in-depth preparation of budget allocation, and delay in budget allocation among many other factors have posed as the challenges.

Likewise, Finance Secretary Shishir Kumar Dhungana said that the financial transaction has witnessed growth with 75 per cent of the industries coming into operation while 36 per cent are partially running

On the occasion, National Planning Commission Vice-Chairman Pushparaj Kadel stressed the need to strictly adhere to the criteria of budget implementation.

Likewise, Revenue Secretary Ram Sharan Pudasaini said that the lack of budget expenditure would also affect job creation. He said that it is necessary to move forward by giving it utmost importance.

In the program, Pudasaini said that the secretaries should prepare and implement the working procedures at the ministry level.