Nepal Government Revises Downward Budget Estimates in Mid-Year Review Amid Spending Concerns
Summary
Nepal's government has reduced the fiscal year 2082/83 budget expenditure estimates by 14.04 percent in the mid-term review, citing challenges in spending and revenue collection.
Key Points
- The government reduced the fiscal year 2082/83 budget expenditure estimates by 14.04 percent in the mid-term review.
- Capital expenditure was cut by 40.35 percent, from Rs 407.89 billion to Rs 243.30 billion, marking possibly the lowest in Nepal's history.
- Finance Minister Ramesh Khanal reported a Consolidated Fund deficit of Rs 130 billion and postponed Rs 119 billion worth of projects due to readiness issues.
- Economists and former officials criticize the recurring practice of inflating budgets and subsequent downward revisions as harmful, citing political instability and poor budget preparation.
