KATHMANDU: Nepal’s finance minister on Sunday announced a full budget of Rs 517.24 billion for the fiscal year 2013/014. Finance Minister Shankar Prasad Koirala presented the budget in the National Planning Commission at Singha Durbar. 

Of the total budget, Rs. 385 billion has been allocated for current expenditures and Rs. 85.1 billion for capital expenditure.

Reading out the budget, Finance Minister Koirala said the government has allocated Rs. 241 billion 580 million for development-construction works and Rs. 275 billion 660 million for general expenditures.

The government targets to meet the budget expenses through the collection of Rs. 354 billion and 500 million through revenue sources, Rs. 5.5 billion from return of principle returns and Rs. 69.54 billion from foreign donation. Likewise, the deficit would be met through foreign loan worth Rs. 43.7 billion and domestic loan worth Rs. 44 billion.

As per the budget statement, Rs. 16 billion has been allocated for the CA polls scheduled to be held on November 19.

The government has also increased the salaries of the government employees and security personnel by 18 per cent. In addition, they will receive a monthly allowance of Rs 1,000.

The budget for F/Y 2013/14 also estimates an economic growth rate of 5.5 per cent while limiting the inflation rate to 8 per cent.

Also present on the occasion were Heads of the constitutional bodies, chiefs of the security agencies, leaders of the major four political forces, government secretaries and other officials, and the businessmen and industrialists, as well as media persons to cover the event.

Likewise, the government has allocated Rs 16 billion for holding the upcoming Constituent Assembly (CA) election.

The Government has increased the salary scale of all civil servants including army and police personnel and teachers by 18 per cent with effect from new fiscal year 2013/14.

According to the budget estimates for 2013/14 presented by Finance Minister Shanker Koirala today, along with the 18 per cent rise in basic salary the civil servants will also get an allowance of Rs. 1,000 per month.

The budget has allocated Rs. 16 billion for the CA polls, and Rs 30 billion for the energy related projects in the full budget. Finance Minister said that the budget has given continuity to development projects introduced by the earlier government.
Similarly the budget has recognized Pashupati Area Development Trust, Lumbini Development Trust, President’s Chure Bhawar Conservation Project, and Bheri-Babai Mulitipurpose Diversion Project as projects of national pride.
Along with the budget has been diversified under various headings. Of them hydro-electricity and energy; agriculture; infrastructure development; education health and drinking water, tourism promotion; promotion of investment in private sector; export and import; improvement in public service and good governance has been set priorities of the government.
Chairman of the Interim Election Council Khil Raj Regmi, his Cabinet colleagues, heads of the constitutional bodies, chiefs of the security agencies, leaders of the major four political forces, NPC vice chairman, government secretaries and other officials, and the representatives of the business community are also present on the occasion.

Earlier, the Cabinet meeting held at the Office of the Prime Minister and Council of Ministers had endorsed three budget-related ordinances this afternoon.

The budget was brought in after President Dr. Ram Baran Yadav certified the ordinances as per the Article 88 (1) of Interim Constitution.

KATHMANDU: The government has passed the budget ordinance and send to President Ram Baran Yadav for approval this afternoon.

Finance Minister Shankar Prasad Koirala will read out the budget after the ordinance submitted by the government was approved from the President. The President will approve the ordinance as per Article 88 (1) of the Interim Constitution of Nepal-2063 B.S.

The finance minister would read out the budget at 7:00 from the Dr Harka Gurung Hall, National Planning Commission.

KATHMANDU: Former Vice-chairman of the National Planning Commission Dr Deependra Bahadur Kshetri has said that the targeted economic growth rate would not be achieved until focus was paid in agriculture in the new budget.

“The youths leaving for foreign jobs should be retained by giving continuity to youth self-employment program,” he said.

Speaking at an interaction in the Reporters Club today, Kshetri who is also the former Governor of the Nepal Rastra Bank said good programs of the previous government should be continued without any prejudices otherwise estimated economic growth rate will not be achieved.

The program was presided over by Club’s Chairman Rishi Dhamala.

Likewise, economist Dr Bishambhar Pyakurel has said that the new budget would add to pain to the people instead of giving relief.

He said the new budget would bring nothing new programs for reform as the government itself was not independent to bring a full budget. “This will be a ritualistic budget, ” he said. 

He also claimed that Nepal’s economy was mobilized by some unseen power and suggested that the government should not stop bringing new budget just by the President told the finance minister to bring a partial budget.

He said government should bring programs to expedite capital expenditure and control excessive price hike.

Likewise, Senior Vice-President of Federation of Nepalis Chambers of Commerce and Industry Bhaskar Raj Rarkarnikar said a full budget with government policy and programs should be brought and warned to take to the street if such budget was not unveiled.

He also said that continuity of the old budget will not be acceptable to the private sector.

Similarly, economist Dr Madan Dahal said the government should work actively against black marketeering and to lure the private sector.

He said a chemical fertilizer company should be established in the PPP model as agriculture should be prioritized to develop the nation.

KATHMANDU: Former Finance Ministers have claimed that the current election government cannot bring new policy and programs through the new budget. They also claimed that the current government cannot take decision to increase the criteria of tax.

Speaking at an interaction at Reporters Club today, they said this government also should give continuity to the old policy and programs.

Former Finance Minister and UML leader Bharat Mohan Adhikari said the government should bring a full-size budget as the country’s economic condition was too poor.

He urged the government to increase the budget in energy, infrastructure development, foregin investment, export promotion and local development projects.

Likewise, UCPN (Maoist) leader and former Finance Minister Barsha Man Pun said there should be no politicking in budget.

He however suggested that the current government should not bring budget by shifting the policy.

Nepali Congress leader and former Energy Minister Dr Prakash Sharan Mahat said that full budget was required to give a free flow to the economy. He said energy and development of transmission line should be prioritized in the budget.

Former Finance Minister and and leader of Rastriya Prajatantra Party Dr Prakash Chandra Lohani slammed the President’s directive to bring only one-third budget. “Full budget should be brought not the one-third budget,” he added.

Club’s Chairman Rishi Dhama Chaired the interaction program.

Likewise, advisor of the Finance Ministry Dr Chiranjibi Nepal said the size of budget would be Rs 506 billion and it would come in time. He said some major but programs there were not prioritized in the past would be introduced in this budget.

He also made it clear that the President has not directed the Finance Ministry to bring only one-third budget.

KATHMANDU: Finance Minister Shankar Prasad Koirala has said that the full budget was unveiled by giving due priority to the projects of national importance.

Speaking at an interaction program at the Reporters Club on Thursday, Minister Koirala said Rs 6 billion was allocated for the upcoming CA elections.

Club’s Chairman Rishi Dhamala presided over the interaction program.

Likewise, over Rs 15 billion was allocated for the energy sector considering the impact of the power outage on the industries of the country. For the time being power would be purchased from neighbouring India and will be provided in existing price with subsidy from the government if it costs higher than usual, he added.

Stating that the government has adopted a policy of increasing investment on industries that displace imports, the Finance Minister also disclosed that a revenue advisory committee has been formed to carry out necessary home work for the new fiscal year budget.

President of Nepal Chamber of Commerce Suresh Kumar Basnet and Officiating President of Federation of Nepalese Chambers of Commerce and Industries Bhaskar Raj Rajkarnikar said despite being an election government the budget it has tabled is likely to show goods signs for economic progress of the country.

Likewise, FNCCI Vice-president Pradip Raj Pandey and industrialist Diwakar Golcha said the appropriation of Rs. 300 million for promoting export-based industries was a good beginning for minimizing the trade deficit.

KATHMANDU: The private sector has given a mixed reaction about the adjusted budget announced by the government. The business leaders have expressed concerns over government’s failure to brining any new policies and programs.

It was unfortunate for the nation that it witnessed the budget announcements in three phases in a fiscal year, they said.

President of Nepal Chamber of Commerce Suresh Basnet said the private sector has not expected much from this budget brought with a focus on the upcoming Constituent Assembly (CA) elections but added that some projects incorporated in it for the development of economic sector are positive.

Projects related to the construction of a new hall for industrial exhibition inside Kathmandu Valley and development and expansion of a special economic zone in Bhairahawa are positive, he said.

He said sluggish development projects resulted from limited paid-up capital and merely collection of revenue were the negative indicators seen in the country’s economic sector.

Similarly, President of Confederation of Nepalese Industries Narendra Kumar Basnyat said although the budget brought by the government is private sector-oriented in view of policy, its implementation is awaited.

The announcement to make the country self-dependent in cement production within the next two years is praiseworthy, he said.

Likewise, President of Federation of Small and Medium Entrepreneurs, Janga Bahadur Shrestha, said the Nepali people did not have much expectations from the budget announced focusing on the election. However, stress on some economic issues are positive aspect of the budget, he said.

Similarly, Vice President of Federation of Nepalese Chambers of Commerce and Industry, Pashupati Murarka, said the program related to an increment of paid-up capital was positive. The budget would be supportive in addressing the problem of liquidity seen in the Nepali market, Murarka added.

KATHMANDU: The economic growth rate of the country is expected to be lower than last year due to unfavorable environment of the country, Finance Minister Shankar Prasad Koirala said while releasing the country’s macro-economic indicators of the current economic situation in the budget on Tuesday.

The agriculture growth rate would be lowered at 1.3 percent in the current Fiscal Year while non-agriculture sector growth rate is expected to remain at 4.8 per cent, Minister Koirala said.

According to Koirala, the revenue collection stands at Rs 177.96 billion during the first seven months of the current fiscal year. Of the total revenue, tax revenue is Rs 156.78 billion and non-tax revenue is Rs 21.18 billion.

The total revenue is higher by 23.2 percent than the same period in the last fiscal year.

Similarly, country’s trade deficit is on the rise due to increase in imports. The trade deficit has remained equivalent to Rs 308 billion until the first eight months of the current fiscal year.

Total imports have reached Rs 358 billion, which is 24 percent higher than the same period last year, he said.

During this period, total export remains equivalent to Rs 50 billion, just 5 percent higher than the last year.

Despite the high trade deficit, the balance of payment is surplus by Rs 1.59 billion until mid-February due to increase in income from services and remittances.

Similarly, the service sector growth is expected to remain at 6 percent and industrial sector growth at 1.5 percent.

The economic growth rate is projected to be at 3.6 percent in basic prices in current Fiscal Year 2012-13, Minister Koirala said.

Similarly, inflation in mid-February 2013 remains at 10.1 percent against the target of 7.5 percent.

On the public finances, until the mid-March of this current Fiscal Year, current

expenditure reaches to Rs 129.88 billion, capital expenditure reaches to Rs 13.42 billion and financial management reaches to Rs 11.50 billion.

This amount is 44 percent of the total amount that was authorized by Ordinances related to the Expenditures for Services and Works.

KATHMANDU: The Government has presented a full-size adjusted budget of Rs 404.82 billion for the final three months of the current fiscal year 2012/13.

Of the total budget appropriated for the period, Rs. 279.1 billion or 68.92 per cent is allocated for recurrent expenditure, Rs. 66.13 billion or 16.34 per cent for capital expenditure and Rs. 59.67 billion or 14.74 per cent for financing provisions.

Reading out the budget from the meeting hall of the National Planning Commission here this evening, Finance Minister Shankar Prasad Koirala said the budget or the estimate of revenue and expenditures was presented while adjusting the appropriated amounts in the ordinances promulgated by the President on July 15 and November 20, 2012.

According to the budget estimates, of the sources of financing, Rs. 289.60 billion will be covered from revenue, Rs 4.39 billion from receipt of principal repayment and Rs 46.98 from foreign grants.

KATHMANDU: Nepal’s interim government is brining a budget for remaining three months of the current fiscal year 2069/070 BS. Finance Minister Shankar Prasad Koirala would read out the budget at 4:00 this afternoon.

Over 50 billion would be allocated for the remaining three months of the current fiscal year. The total size of the budget is expected to be Rs 438 billion, a source at the Finance Ministry said.

Earlier, on Monday spokesperson at the Ministry Krishna Devkota had said that the budget would exceed Rs 400 billion. The budget is likely to focus on regular expenditures of the government and upcoming Constituent Assembly elections.

This is the third time that the Nepal government is announcing budget in a single economic year.