Apart from that, the government would also set aside around Rs 26 billion for servicing principal and interest, he added. [break]
Informing lawmakers about the sources of financing at the Finance and Industrial Relations Committee of the parliament on the day, Baskota said the government plans to mobilize about Rs 246 billion in revenue, Rs 75 billion in foreign grants, Rs 26 billion in foreign loans and about Rs 35 billion in domestic borrowing to finance the next fiscal year´s spending.
While the thrust of the new budget would be on infrastructure development, Baskota elaborated the government will provide at least Rs 3 billion to subsidize chemical fertilizers, Rs 1.75 billion to construct Mid-hills Highway and Rs 1.50 billion for the development of Kathmandu-Tarai fast track road.
“Investments in agriculture will aim for commercialization of agriculture, while investments on roads will mainly focus on completing projects that are already identified, instead of scattering them into new ones,” said Baskota.
Lawmakers, however, raised question over effectiveness of the budget, particularly referring to the Policy and Programs´ “attempt to focus on too many sectors and programs at one go”.
“The government has said it will build numerous regional airports. I think it will dilute the focus that the second international airport should get,” said lawmaker Dr Tilak Rawal.
Nepali Congress lawmaker Minendra Rijal said the new budget should make special address on problems seen in the financial sector and low economic growth rate.
During the meeting, lawmakers unanimously demanded the government to hike civil servants´ salary. However, they differed widely over the extent of hike.
Given the consistent double-digit inflation over the last couple of years, lawmaker Jip Chhiring Sherpa said the government should double the salary of civil servants.
Others, however, cautioned the government to be aware of the inflationary pressure the hike in salary may leave in the market. To do away with such pressure, lawmakers even suggested that the government provide civil servants non-cash benefits like coverage of children´s education fees and medical bills, among others.
Lawmakers representing the private sector, like Diwakar Golchha, on the other hand, asked the government to focus on energy generation in a bid to revive industrial productions and give boost to exports.
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