Government to Unveil Mid-Year Budget Review Tomorrow Amidst Implementation Challenges

Kathmandu. The government is set to publicly release the mid-year review of the current fiscal year's (2082/83) budget tomorrow (Tuesday).

The Ministry of Finance is scheduled to present the mid-year budget review at a press conference tomorrow at 1 PM. The ministry had appointed Suman Dahal, the chief of the Budget and Program Division, as the coordinator to work on the budget review for the past two months.

Ministry Spokesperson Tanka Prasad Pandey confirmed that the ministry is holding a press conference to release the mid-year budget review. Spokesperson Pandey stated that although the target was to complete the budget review between Magh 20 and 25, it is being released tomorrow after a delay.

The ministry stated that the mid-year review was prepared after obtaining the actual details for the first six months of the current fiscal year (from Shrawan to Poush), evaluating the status of budget implementation, revenue collection, and expenditure.

The Economic Procedures and Financial Responsibility Act mandates that the mid-year evaluation report of the budget and programs must be published by the end of Magh every year. The Act also stipulates that the Ministry of Finance must prepare such a report at least 15 days before the scheduled publication date.

It appears almost certain that the size of the budget brought by the government will be reduced through revision, as has happened in previous years. Budget implementation has not proceeded smoothly due to the 'Gen-G' movement that occurred on Bhadra 23 and 24 following the government's budget announcement. The movement has added other financial burdens. Liabilities not included in the original budget have been added to the current government.

This is why a budget cut seems certain for the budget introduced by the government. Following the 'Gen-G' movement, the government is in a situation where it must mobilize up to 30 billion for the elections scheduled for Falgun 21. This necessitates the compulsion to cut the development budget.

The Ministry of Finance is working with the strategy of allocating funds for the Falgun 21 elections and the reconstruction of government structures destroyed during the 'Gen-G' movement by freezing 120 billion rupees allocated for 53 projects.

The then Finance Minister Paudel had introduced a budget of 19 kharba 64 arba 11 crore for the current fiscal year. In the mid-year budget review over the past 10 years, the estimated budget size has consistently been revised downwards.

Out of the total allocated budget, the current expenditure accounts for 11 kharba 80 arba 98 crore, which is 60.1 percent; the capital expenditure is 4 kharba 7 arba 89 crore, which is 20.8 percent; and the financial management expenditure is 3 kharba 75 arba 24 crore, which is 19.1 percent.