Nepal announces annual budget of Rs 1.793 trillion for 2022-23

Written By: Saloni Murarka WION
Kathmandu Updated: May 29, 2022, 11:20 PM(IST)

(File photo) Budget session of Nepal Parliament Photograph:( Agencies )

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Amid the critical economic situation, the government has targeted to achieve an ambitious economic growth rate of 8 per cent for the next fiscal year, compared to the initial target of 6.5 per cent for the current fiscal year

The Nepal government on Sunday announces its annual budget of Rs 1.793 trillion for the fiscal year 2022-23, highlighting 'Make in Nepal’ and ‘Made in Nepal’ campaigns as rising imports increase the country’s economic vulnerability. 

Presenting the budget at the joint session of the parliament, Finance Minister Janardan Sharma said the budget’s main focus is on inclusive development, inflation control, providing adequate resources to subnational governments, and a self-reliant economy. 

“The programs run by the private sector like ‘Make in Nepal’ and ‘Made in Nepal’ will be supported by the government. Provisions made for the use of domestic products in government and public offices,” Sharma said. 

“Venture capital to be promoted and funds to be established for the promotion of manufacturing industries. Nepal government will promote Made in Nepal companies,” he added. 

The government has set aside Rs 753 billion of the total budget for recurrent expenditure, while Rs 380 billion has been allocated for capital expenditure. Likewise, Rs 230.22 billion has been allocated for other financial purposes. 

“The government will focus on production and agriculture to decrease imports by 20 per cent. A national campaign will be launched to increase agriculture production to achieve self-reliance,” the minister said. 

Out of the allocated expenditure, the government has targeted to finance Rs 1.240 trillion through revenue mobilisation. For the rest of the amount, the government will go for domestic borrowing of Rs 256 billion and is expected to rake in Rs 242.26 billion through foreign loans and Rs 55.46 billion from foreign grants.

Amid the critical economic situation, the government has targeted to achieve an ambitious economic growth rate of 8 per cent for the next fiscal year, compared to the initial target of 6.5 per cent for the current fiscal year. 

At a time when the government is being criticised for its inefficiency in controlling the inflationary pressure, Finance Minister Sharma assured to rein inflation within the 7 per cent limit. 

The Nepal government has pledged to increase employment by 30 per cent annually. 

Following the impact on the tourism sector for the last two years, the incumbent government has set a target of attracting 1 million tourists in the upcoming fiscal year and allocated Rs 9.38 billion to the tourism sector. 

A mountaineering research centre would be set up in the Mt Everest region, while Rs 330 million has been allocated for the construction of the Great Himalayan Trail. 

Both Gautam Buddha International Airport and Pokhara Regional International Airport will be made with China’s support, and it will be brought into a full-fledged operation. 

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