Despite financial pressures, the government is expected to increase the budget size.
Amid the growing expectations from public and industrial sectors for financial relief, the Nepali Government is all set to unveil the much-awaited Federal Budget for FY 2020/21 (2076-77) on May 28, 2020.
Finance Minister Dr. Yuba Raj Khatiwada is scheduled to present the government’s revenue and expenditure estimates for the new fiscal at the Federal Parliament at 4 PM today.
Earlier, the Nepali Government has presented an NPR 1.53 trillion budget for FY 2019/20, up from NPR 1.315 trillion for FY 2018-19. It has aimed at achieving economic growth of 8.5 percent in FY 2019/20.
However, the coronavirus pandemic has had an enormous impact on fiscal revenue growth, scattering the nation’s economic goals.
Even though the economic growth is as estimated until mid-March, the COVID-19 lockdown had severely affected the economy, bringing down the expected economic growth to 2.3% for the current FY 2019-20.
So, the government will undeniably encounter several economic issues to be addressed in the upcoming fiscal.
The upcoming budget is expected to stabilize the nation’s economy and its shaky job market and support small and medium-sized businesses that have taken a battering from the contagion.
Economic Challenges in Plate for FY 2020/21 Budget-
- Assistance for individuals who lost employment
- Support to the hard-hit private sector
- Covering financial liabilities like salaries of government employees, pension and fiscal transfers to the local governments
- Financial relief for the needy
- Restarting halted projects
- Introducing new projects and programs
- Improving the public healthcare system
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However, the government is not optimistic about raising the revenue target for the next fiscal as it is scrambling to collect the targeted revenue in the current fiscal due to the pandemic.
Moreover, Nepal cannot rely on foreign grants at this moment as most of the countries are themselves reeling under economic crises.
Despite the pressures on finances, the Nepali Government is preparing to increase the budget size compared to the total estimated expenditure for the current FY.
Nepal Federal Budget 2020/21 Highlights
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