Kathmandu, Feb 6: The government has revised the budget for the current fiscal year following a half-yearly review.

Presenting the revised budget in today's House meeting, Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel announced that the updated budget estimate stands at Rs 1692.73 billion, down from the original Rs 1860.3 billion. The revised figure accounts for 90.99 percent of the total allocation initially announced in the budget speech.

According to Minister Paudel, the revised budget includes an allocation of Rs 1029.3 billion for current expenditures, Rs 299.5 billion for capital expenditures, and Rs 363.93 billion for fiscal management.

The revised budget estimates that Rs 1476.26 billion will be sourced from government resources, including revenue collection and internal loans, while Rs 36.62 billion will be allocated for foreign grants, and Rs 180.83 billion will be financed through foreign loans by the end of the fiscal year.

The finance minister further stated that Rs 34.89 billion has been allocated to provinces, and Rs 150.26 billion to local governments as part of the fiscal transfer.

In his address, Minister Paudel also pointed out areas that require reform for more effective budget implementation and resource management. He highlighted that new organizations will not be created in government offices, regulatory bodies, or public enterprises, and austerity measures will be enforced.

While presenting the budget review, Paudel criticized the previous government, saying that the budget was not based on sound principles. He described it as a burden, pointing out that it violated cabinet policy by approving projects worth less than Rs 30 million, which contradicted earlier decisions.

Minister Paudel also highlighted a funding shortfall of Rs 30 billion for the Ministry of Health and Population.

On a positive note, he shared that Rs 56 billion was spent in the first six months of the current fiscal year, compared to Rs 49.91 billion during the same period last year.

Addressing key economic indicators, Minister Paudel noted that remittance inflows have not decreased compared to the previous fiscal year. He also praised the ordinances introduced by the current government, which he said had addressed various economic challenges, with the private sector expressing optimism.

Revenue collection is on track to meet the target, he added, and reforms in public fiscal management have been successfully implemented, including the introduction of a computer-based accounting system.

The next meeting of the House of Representatives is scheduled for 1:00 pm on Friday.

Following the presentation in the House, Minister Paudel held a press conference at the Ministry of Finance, where he reiterated the government’s focus on performance and results. He emphasized that efforts are ongoing to implement reforms aimed at improving the economy.