Kathmandu, 30 May: The budget presented by Finance Minister Yubraj Khatiwada for next fiscal year 2019/20 effective from 16 June is populist and ambitious.
The total size of the budget for next fiscal year presented Wednesday afternoon at the joint session of the federal parliament has been recorded at Rs 1.532 trillion.
The budget has adopted ambitious plan to increase domestic revenue. The budget has set federal government’s revenue collection target of Rs 981.12 billion, which is ambitious. The government plans to receive foreign grants worth Rs 298.8 billion and loans worth Rs 58 billion. Accordingly, the government has planned to raise internal borrowing worth Rs 195 billion to meet the expenditure.
The budget has increased elderly allowance by one thousand rupees making it three thousand rupees per month from existing two thousand rupees.
Accordingly, the budget has increased salary of the civil servicemen by 20 percent.
Although the Minister has claimed to use domestic products, the budget has made less effort on increasing domestic production and substituting imports. The government has claimed to be independent on agro-products but there lacks effective programme to meet the goal.
In conclusion, the budget has relayed on revenue received through customs duty from imports, which will contribute to further widen existing trade deficit and also widening existing negative balance of payment.
As the budget is based on populist programmes, the government has not been able to introduce new infrastructural projects.
The government revenue can meet just the general expenditure, therefore, there is lack of fund for the infrastructural investment. So far, the government has relayed on foreign direct investment and loan to manage fund for infrastructural investment.
The government aims to utilise Rs 957.1 billion as recurrent expenditure; it has allotted Rs 408.59 billion for capital expenditure and Rs 167.86 billion for financing provision.
The budget has given priority to export-oriented industries, employment generation programmes and promotion of agriculture and tourism sector, however, economic experts express doubt on the government effectiveness.
People’s News Monitoring Service
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