Interim government slashes budget by 14 percent
Summary
Nepal's interim government has reduced this fiscal year's budget by 14.4%, revising it to Rs1.68 trillion due to underutilization of funds, while maintaining a 6% growth projection and preparing for upcoming elections.
Key Points
- Nepal's interim government cut the annual budget by 14.4%, revising it to Rs1.68 trillion from the original Rs1.96 trillion.
- Capital expenditure was heavily reduced from Rs407.88 billion to Rs243.30 billion due to weak spending pace.
- The government maintains a 6% economic growth projection despite the budget cut, expecting election-related spending to boost consumption.
- Election-related expenditures and security have been prioritized, with funds allocated for police vehicles and riot control equipment.
