Deputy Prime Minister and Finance Minister Krishna Bahadur Mahara is presenting the budget for the fiscal year 2017/18 at the Legislature-Parliament. This is the first time Mahara is presenting the budget.

The presentation of budget for fiscal year 2017/18 was delayed after the main opposition CPN-UML warned of obstructing the House proceedings demanding to meet its demand inclding withdrawal of impeachment motion against Chief Justice Sushila Karki. 

Although the exact size of the budget is unknown, the resource committee on Sunday evening had approved a budget ceiling of Rs1,280 billion for the fiscal year 2017-18. The ceiling is 22 percent higher than the actual budget of Rs1,048.9 billion for the current fiscal year.

The budget ceiling was fixed based on projection that the government would generate Rs720 billion in revenue in the next fiscal year. The revenue collection target for this fiscal year stood at Rs565.9 billion.

The government is also planning to mobilise around Rs300 billion in foreign grants and loans in the next fiscal year, while domestic borrowing will be limited to 5 percent of the gross domestic product. Also, funds that have not been utilised this fiscal year and principal repayment are expected to contribute around Rs125 billion to next fiscal year’s spending.