Budget ceiling of Rs 600 bn likely for next year

KATHMANDU:

The National Planning Commission, the apex body that frames country’s development policies, is likely to ask the Ministry of Finance to limit annual budget for next fiscal year at around Rs 600 billion.

The annual expenditure amount proposed by the National Planning Commission’s resource committee for fiscal 2014-15 is around 16 per cent more than Rs 517.24 billion allocated for this fiscal.

“However, we are yet to fix the exact amount, which will be done within a few days,” NPC Joint Secretary Pushpa Lal Shakya told The Himalayan Times after the committee’s meeting held today.

The committee, led by National Planning Commission Vice Chairman Rabindra Kumar Shakya, comprises Nepal Rastra Bank Governor Yuba Raj Khatiwada and Finance Secretary Shanta Raj Subedi, among others, as members.

The National Planning Commission’s committee has come up with next fiscal’s annual expenditure figure based on revenue collection target of around Rs 418 billion and foreign aid mobilisation target of around Rs 128 billion for next fiscal.

The National Planning Commission’s resource committee generally comes up with annual budget ceiling for next fiscal within first six months of the ongoing financial year and also provides budget cap for upcoming year to ministries so that they can devise programmes for next fiscal by remaining within the ceiling.

“We will fix the ceiling for various ministries within next week,” Shakya said.

This year’s budget had allocated Rs 353.42 billion for recurrent expenses, like salary payment

of civil servants and debt servicing, Rs 85.10 billion for capital expenditure, like building infrastructure projects, and Rs 78.72 billion for financing provisions, like credit for state-owned enterprises.

To finance these expenses, the government has planned to raise Rs 354.50 billion through tax and non-tax revenue.

The government also has planned to get Rs 5.50 billion through principal repayment, Rs 69.54 billion through foreign grants and Rs 43.70 billion through foreign loans.

It has estimated a total of Rs 44 billion through debt raised from domestic market.

PLAN FOR 2014-15

• NPC resource committee’s proposed annual expenditure amount for fiscal 2014-15 is around 16 per cent more than Rs 517.24 billion allocated for this fiscal

• The committee has come up with next fiscal’s annual expenditure figure based on revenue collection target of around Rs 418 billion and foreign aid mobilisation target of around Rs 128 billion for next fiscal

CURRENT LAYOUT

• Rs 353.42 billion for recurrent expenses (Salary payment of civil servants and debt servicing)

• Rs 85.10 billion for capital expenditure (Building infrastructure projects)

• Rs 78.72 billion for financing provisions (Credit for state-owned enterprises)

RESOURCES

• Rs 354.50 billion through tax and non-tax revenue

• Rs 5.50 billion through principal repayment

• Rs 69.54 billion through foreign grants

• Rs 43.70 billion through foreign loans

• Rs 44 billion through debt raised from domestic market

Source: THT