The government is announcing the budget for the fiscal year 2013/14 on Sunday, incorporating limited new programs that are necessary to spur exports, generate energy and boost the morale of the private sector. “Barring some highly essential programs, most of the programs in the coming budget will be in line with the current fiscal year´s budget. The coming budget will mainly attempt to address pertinent problems in the economy such as ballooning trade deficit and eroding confidence of the private sector,” said a source at the Ministry of Finance (MoF). The source also said minor changes will be made in customs tariffs to comply with the tariff reduction provisions of the World Trade Organization (WTO). The source also said incentives for the farm sector, energy generation and export promotion are included in the budget. In view of near double-digit inflation over three years, the coming budget will be increasing the allowances or salary of civil servants, which cost the government around Rs 15 billion annually. Allocations worth Rs 15 billion to 18 billion for the much-hyped election to the Constituent Assembly (CA) scheduled for November 19 and provision of Rs 3 billion for the cost of fresh recruitment of around 9, 000 Nepal Police and Armed Police personnel are adding to the volume of the coming budget. Around Rs 325 billion in recurrent expenditure is expected in the coming budget though most of the programs are going to be within the same limits as in the current fiscal year. To arrange funding for recurrent expenditures, the government is planning to mobilize revenue worth Rs 360 billion and it can also resort to domestic borrowings of around Rs 60 billion and foreign assistance of around Rs 90 billion. The source also said the coming budget will be in the neighbourhood of Rs 510 billion, up from the Rs 506 billion ceiling set by the National Planning Commission (NPC), the apex policy-making body of the government. “Though most of the programs are within the limits of the current budget, the new budget amount will cross the NPC´s ceiling due to the proposed remuneration hike, CA elections and new recruitment into the security forces,” the source said. After seven hours of high-level meeting at MoF on Saturday attended by Finance Minister Shankar Koirala, Chairman of NPC Rabindra Kumar Shakya, Governor of Nepal Rastra Bank Dr Yuba Raj Khatiwada, MoF chief economic advisor Dr Chiranjibil Nepal and Finance Secretary Shanta Raj Subedi, the draft of the budget was presented to Khilaraj Regmi, chairman of the Interim Election Council. The cabinet meeting is scheduled to endorse the budget before it is presented before President Ram Baran Yadav for his seal.
Posted on: Sun, 14 Jul 2013 07:37:07 +0000
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