Budget to be presented today

July 12, 2006
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The Seven Party Alliance (SPA) government is presenting its first budget for the fiscal year 2006/07 on Wednesday.

Finance Minister Dr. Ram Sharan Mahat

Finance Minister Dr. Ram Sharan Mahat (File Photo)
Finance Minister Dr Ram Sharan Mahat will present the budget in the reinstated House of Representatives at around 4.00 p.m. State run Nepal Television and Radio Nepal will broadcast the budget speech live.

According to reports, Finance Minister Dr Mahat is proposing an annual budget of Rs 144 billion.

Of the total earmarked expenditure, over Rs 84 billion will go for financing recurrent expenditure, while around Rs 45 billion will go for capital expenditure and the remaining Rs 15 billion plus will be allocated for principal repayment on both domestic and foreign debt.

For sources of financing, the budget will have a total revenue target of around Rs 85 billion, 18 percent higher than the revised estimated of Rs 72 billion for the current fiscal year.

Likewise, the budget will target mobilization of around Rs 18 billion in internal loan and meet the deficit of Rs 41 billion through foreign loans and grants.

The government will reduce the expenditure of palace and security in the budget.

This is the first-time the budget is being presented to the parliament since the then Prime Minister Sher Bahadur Deuba dissolved the parliament in 2002.

The country was running through Finance Ordinances presented by various ministers.

The Finance Minister is presenting the budget at a time experts are calling the government to present the budget only for day to day expenses as the government is for a very short period while the Maoists are demanding to present the budget once the interim government with their participation is formed.

According to sources, the Maoists are not happy with the government’s act of presenting budget without their consent.

The Economic Survey 2006 presented by the government said the economy of the country grew by a mere 2.4 percent this year due to drought which dragged down agriculture production while conflict and political stir squeezed industrial activity.