Finance Minister Madhukar Shumsher Rana Wednesday made public the mid-term evaluation report of the current annual budget, claiming that major components of the national economy were making headway during the initial six months.

At a press conference organised to unveil the mid-term evaluation report, Rana said revenue increased by 18.6 percent during the past six months as compared to the same period in the previous fiscal year. The government projected the revenue growth at 16.6 percent by the end of the fiscal year totalling Rs.72.7 billion.

The mid-term evaluation report stated that the regular expenditure, which stood at Rs.25.51 billion during this period, was quite under control while there was some progress in terms of utilising the development budget, which totalled Rs.11.49 billion.

The Finance Minister claimed the government was actively working towards fulfilling the commitments to reform programs as expected by foreign donors and added that government was also serious to meet the conditions set by the World Bank for its second phase assistance for the budgetary support program.

According to the evaluation report, there has been a heady progress in terms of foreign assistance – up by 59 percent – during the initial six months of the current fiscal year. From agreements already reached with various donors, the government expects to receive Rs.13.93 billion in grant and Rs.9.49 million as loan.

“Foreign aid flow has been encouraging during this period which we expect will rise further,” Rana said.

The minister also vowed to initiate prompt action against those listed by the Rastra Bank as wilful defaulters while new labour laws would also be introduced.

“The government’s moves will be based on its 21-point guidelines. Security will remain one of the priority areas,” he said, “We prefer dialogue with the Maoists but at the same time will take all necessary steps to bring them to the table or restore peace by other means.”

Major part of the implementation of the current annual budget took place during the ousted Sher Bahadur Deuba government. The present cabinet was formed on Feb 2, a day after the Royal Proclamation.