Bagmati State unveils budget of Rs 51 billion with focus on HDI development

The Bagmati State government has presented a budget of Rs 51.42 billion for the fiscal year 2077/78. The size of the State’s upcoming year’s budget is less by Rs 4 billion against the current fiscal year.

Unveiling the budget, Economic Affairs and Planning Minister of the State Kailash Prasad Dhungel said that recurrent budget is Rs 26.28 billion (51.12%) while Rs 25.14 billion (48.88%) is allocated for the capital expenditure.

As stated by Dhungel, Rs 20.83 billion would be collected for the tax revenue, Rs 17.87 billion from inter-governmental grants and Rs 5.13 billion from other revenue sources while Rs 7.5 billion will be received from revenue surplus.

Minister Dhungel said that the local levels with low Human Development Index (HDI) would be prioritized to ensure provincial balance by making the process of development projects section and program implementation judicious.

State projects bank management information system would be brought into operation after research and study, he said.

On the occasion, Minister Dhungel said that the rate of tax would be adjusted through the recovery of the areas that are badly affected by the risk of coronavirus infection while announcing exemption and subsidy.

The time to pay the revenue would be extended to those failing to pay the tax on time and information technology-based system would be developed and operated for the tax and non-tax revenues to be collected in the State, the Finance Minister said.

He also announced to widen the ambit of entertainment tax to be made further effective by coordinating with all local levels.

Likewise, the dual jurisdiction over the distribution of revenue between the state and local levels would be reviewed; the revenue collection process would be simplified while the revenue administration shall be made efficient, robust and professional through the use of information technology.