“Last hour announcement and delayed endorsement of budget has always hit our development. This trend must end,” Pandey said. “If every thing goes as planned, we will present the budget in parliament by the first week of June,” he told lawmakers in Finance and Labor Committee of parliament. [break]
If the budget is presented by June first week, Pandey expressed hope that it would be passed by the end of this fiscal and allow the government to start disbursement of development budget as soon as the new fiscal begins.
Pandey said new budget will show striking shift in focus and policy toward revenue mobilization. He indicated that the budget will unveil a fiscal stimulus package for industrial promotion, improving macro-economic indicators and reviving confidence in the economy.
“Our focus now is on steering the economy out of the present gloom. The budget will address this concern,” he said.
Pandey also said the government will allocate budget for only those projects whose feasibility studies have been conducted. “We will change the practice of including programs just for the sake of politics and on the basis of influences. Only those projects that can be instantly started will get priority in the budget,” he said.
Pandey further said the new budget will focus on inclusive, equitable and broad-based development and poverty reduction. Employment creation will also be on high priority, he stated.
The Finance Ministry has declared that the size of the upcoming budget would not cross Rs 335.57 billion. However, it has already received a demand for Rs 425.70 billion from different ministries. “We expect the demand to touch Rs 450 billion by the time we stop consultations,” Pandey said.
To finance a budget of Rs 335.57 billion, the Finance Ministry said the government would need to generate Rs 255.40 billion revenue and get Rs 80.17 billion foreign assistance.
The government plans to mobilize Rs 220.40 billion revenues, mobilize Rs 35 billion through domestic borrowings, receive Rs 58.88 billion in grant assistance and get Rs 21.29 billion in foreign loans.
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