Budget deficit up to Rs 50.63bn
KATHMANDU:
The budget deficit has increased by Rs 10 billion in the fiscal year 2010-11 compared to a fiscal year ago, according to the central bank.
The budget deficit — on cash basis — increased by 24.3 per cent to Rs 50.63 billion in 2010-11 against a deficit of Rs 40.73 billion in 2009-10, said the Nepal Rastra Bank (NRB) annual report. “The ratio of budget deficit to gross domestic product (GDP) remained at 3.8 per cent against 3.5 per cent in a fiscal year ago.”
The domestic financing of the budget deficit through the issuance of securities amounted to Rs 33.68 billion accounting for 2.5 per cent of GDP, it said, adding that after deducting the principal repayment of Rs 6.05 billion from gross domestic borrowings, net domestic borrowings — including overdraft of Rs 13.01 billion from the Nepal Rastra Bank — stood at Rs 40.64 billion.
The ratio of net domestic borrowing to GDP stood at three per cent. Consequently, the government’s total outstanding domestic debt increased to Rs 200.21 billion including the government’s overdraft of Rs 7.88 billion in 2009-10 and an overdraft of Rs 13.01 billion in 2010-11.
Though the revenue mobilisation has increased by 11.6 per cent to Rs 200.79 billion, it could not meet the government’s estimate of Rs 216.64 billion.
The revenue had risen by 25.4 per cent to Rs 179.95 billion in the fiscal year 2009-10.
But the revenue to GDP ratio remained at 14.9 per cent in 2010-11 as against 15.4 per cent in 2009-10, the data revealed. The central bank attributed the delayed budget and slow growth rate of the capital expenditure for low growth rate of revenue mobilisation.
Similarly, decline in the growth rate of import has also affected the growth rate of revenue, it added.
The government expenditure — on cash basis — increased by 10.7 per cent to Rs 277.68 billion in the fiscal year 2010-11 compared to an increase of 21.3 per cent to Rs 250.82 billion a fiscal year ago.
The low growth rates on both recurrent and capital expenditures were attributed for a low growth rate in the government expenditure, the central bank noted.
The government’s recurrent expenditure rose by 13.5 per cent to Rs 166.01 billion compared to an increase of 22.3 per cent a fiscal year ago. “Delay in the announcement of the annual budget was responsible for a low growth rate of recurrent expenditure, ‘it blamed.
Similarly, the capital expenditure went up by 15.7 per cent to Rs 87.89 billion compared to an increase of 21.1 per cent a fiscal year ago. However, capital expenditure accounted for only 67.8 per cent of the annual budget estimate.
“Delayed budget and approval of programme and procurement process slowed down the infrastructure development projects lowering the capital expenditure,” the central bank concluded.
Source: THT
The budget deficit has increased by Rs 10 billion in the fiscal year 2010-11 compared to a fiscal year ago, according to the central bank.
The budget deficit — on cash basis — increased by 24.3 per cent to Rs 50.63 billion in 2010-11 against a deficit of Rs 40.73 billion in 2009-10, said the Nepal Rastra Bank (NRB) annual report. “The ratio of budget deficit to gross domestic product (GDP) remained at 3.8 per cent against 3.5 per cent in a fiscal year ago.”
The domestic financing of the budget deficit through the issuance of securities amounted to Rs 33.68 billion accounting for 2.5 per cent of GDP, it said, adding that after deducting the principal repayment of Rs 6.05 billion from gross domestic borrowings, net domestic borrowings — including overdraft of Rs 13.01 billion from the Nepal Rastra Bank — stood at Rs 40.64 billion.
The ratio of net domestic borrowing to GDP stood at three per cent. Consequently, the government’s total outstanding domestic debt increased to Rs 200.21 billion including the government’s overdraft of Rs 7.88 billion in 2009-10 and an overdraft of Rs 13.01 billion in 2010-11.
Though the revenue mobilisation has increased by 11.6 per cent to Rs 200.79 billion, it could not meet the government’s estimate of Rs 216.64 billion.
The revenue had risen by 25.4 per cent to Rs 179.95 billion in the fiscal year 2009-10.
But the revenue to GDP ratio remained at 14.9 per cent in 2010-11 as against 15.4 per cent in 2009-10, the data revealed. The central bank attributed the delayed budget and slow growth rate of the capital expenditure for low growth rate of revenue mobilisation.
Similarly, decline in the growth rate of import has also affected the growth rate of revenue, it added.
The government expenditure — on cash basis — increased by 10.7 per cent to Rs 277.68 billion in the fiscal year 2010-11 compared to an increase of 21.3 per cent to Rs 250.82 billion a fiscal year ago.
The low growth rates on both recurrent and capital expenditures were attributed for a low growth rate in the government expenditure, the central bank noted.
The government’s recurrent expenditure rose by 13.5 per cent to Rs 166.01 billion compared to an increase of 22.3 per cent a fiscal year ago. “Delay in the announcement of the annual budget was responsible for a low growth rate of recurrent expenditure, ‘it blamed.
Similarly, the capital expenditure went up by 15.7 per cent to Rs 87.89 billion compared to an increase of 21.1 per cent a fiscal year ago. However, capital expenditure accounted for only 67.8 per cent of the annual budget estimate.
“Delayed budget and approval of programme and procurement process slowed down the infrastructure development projects lowering the capital expenditure,” the central bank concluded.
Source: THT
