Government Presents Budget of NPR 21 Kharba 24 Arba 34 Crore for Fiscal Year 2083/84

Biratnagar. The current government led by Balen Shah has unveiled a budget of NPR 21 Kharba 24 Arba 34 Crore for the upcoming fiscal year 2083/84.

Presented by Finance Minister Dr. Swarnim Wagle in the Federal Parliament, this budget promises digital transformation and good governance on one hand, while allocating billions for administrative expenses and consultations on the other.

There is a significant gap between the actual expenditure of last year, the revised estimate of the current fiscal year, and the target for the upcoming year, with some figures showing contradictions.

Last fiscal year 2081/82 saw an expenditure of only NPR 15 Kharba 13 Arba 24 Crore. While the revised estimate for the current fiscal year 2082/83 is NPR 16 Kharba 96 Arba 32 Crore, the target for the upcoming year is directly set at NPR 21 Kharba 24 Arba. This is a 25 percent increase compared to the revised estimate of the current fiscal year and nearly a 40 percent increase compared to the actual expenditure of last year.

The main sources to finance such a large budget are revenue (NPR 14 Kharba 5 Arba 31 Crore) and loans (NPR 6 Kharba 66 Arba). The fact that approximately 31 percent of the total budget is loan-based increases the risk of debt burden on future generations.

Economist Hari Rokaya, commenting on the size of the budget, stated that increasing the size of political parties does not increase revenue. 'Just because the size of parties in parliament increases, revenue size (government income) does not increase automatically. Without changing the structure of the economy and the institutional framework, there seems to be no alternative but to increase the burden of public debt to raise NPR 21 Kharba 24 Arba,' Rokaya said.

The government has shown the most generosity in consultations and contract services. According to Schedule 10, only NPR 2 Arba 9 Crore was spent on consultations and service fees last year. However, this amount has been increased to NPR 3 Arba 14 Crore for the upcoming year.

Similarly, despite talking about administrative reforms, the government has not been able to curb travel expenses. While NPR 1 Arba 56 Crore 44 Lakh was spent on travel expenses last year, NPR 1 Arba 95 Crore 97 Lakh has been allocated for the upcoming year. For monitoring and evaluation, NPR 1 Arba 22 Crore was spent last year. For the upcoming fiscal year, the budget for this item has been reduced to NPR 1 Arba 13 Crore.

For vehicle fuel for officials, NPR 17 Crore 46 Lakh was spent last year. The current fiscal year estimates an expenditure of NPR 20 Crore 98 Lakh. A lower budget has been allocated for the upcoming fiscal year. The government has allocated NPR 20 Crore 56 Lakh for the upcoming fiscal year. In the context of rising fuel prices, the government appears to be seeking frugality in this head.

Similarly, for office purposes, NPR 3 Arba 36 Crore 72 Lakh was spent last year, and the revised estimate for the current fiscal year is NPR 3 Arba 82 Lakh. The government estimates an expenditure of NPR 3 Arba 79 Crore for this item in the upcoming fiscal year.

Likewise, for vehicle maintenance, NPR 1 Crore 97 Lakh 74 Thousand, and for other maintenance, NPR 2 Arba 5 Crore was spent last fiscal year, while the current fiscal year estimates an expenditure of NPR 1 Arba 98 Crore. The government has allocated NPR 1 Arba 89 Crore for the upcoming fiscal year, which is less than the estimated expenditure for the current year.

Last year, the government spent NPR 82 Crore on the purchase of new vehicles. The Ministry of Finance, which estimates an expenditure of NPR 2 Arba 99 Crore 69 Lakh for the current fiscal year, has set a target of spending NPR 2 Arba 93 Crore 35 Lakh for the upcoming fiscal year, which is less than that.

While the government has estimated an expenditure of NPR 62 Crore for official allowances and other facilities in the current fiscal year, it is estimated to spend NPR 67 Crore 84 Lakh in the upcoming fiscal year. This includes official meeting allowances, other official facilities, and other official allowances.

Last year, NPR 6 Arba 85 Crore 31 Lakh was spent under the machinery and equipment head, and this year the revised estimate is NPR 13 Arba 51 Crore 95 Lakh. For the upcoming fiscal year, NPR 15 Arba 50 Crore has been allocated for the purchase of machinery and equipment. Similarly, while the revised estimate for furniture expenditure in the current fiscal year is NPR 1 Arba 30 Crore, the target for the upcoming fiscal year is NPR 1 Arba 31 Crore.

Economist Dr. Rokaya's analysis suggests that preliminary studies do not consider the budget to be good.

'No reform program has been presented in the budget to promote public welfare and participation in any sector of the economy, i.e., to increase employment and production,' Rokaya said. 'The budget has not presented any program to control the immense price rise caused by the increase in petroleum product prices. The burden of increased salaries and allowances for employees, MPs, and ministers will further increase inflation. The public will have to bear that burden too. Just speaking jargon that ordinary people cannot understand does not make a budget good. Whether it can make the lifestyle of ordinary people easier or not determines whether it is good or bad.'