Print Edition - 2015-02-10 | MONEY
Budget ceiling fixed at Rs 735b
Feb 9, 2015-
A meeting of the resource committee headed by Vice-Chairman of the National Planning Commission (NPC) Govinda Raj Pokharel on Monday fixed the budget ceiling for the next fiscal year at Rs 735 billion.
The upper limit is 19 percent higher than the budget for the current fiscal year.
NPC Member Chandra Mani Adhikari said that the ceiling had been fixed based on the projection that the country would attain an economic growth of 6.5 percent.
The government has aimed to attain 5.5 percent growth this year. The resource committee will also determine the budget ceiling for each ministry within a few days. The ministries will have to prepare their budget plans based on these limits.
After the overall budget size and sector-wise ceilings have been set, the ministries are required to right size the demand for funds based on the maximum limit set by the resource committee.
Out of the projected expenditure of Rs 735 billion for next year, the government expects to collect Rs 512 billion in revenue collection, Rs 148 billion in foreign aid and Rs 74 billion in internal borrowings, said Adhikari.
During this fiscal year, the government has envisaged collecting Rs. 422.9 billion in revenues, Rs 127 billion in foreign aid and Rs 52 billion in internal loans.
The resource committee has fixed the budget ceiling but it is yet to determine the amounts for recurrent expenditure, capital and financing.
The committee has projected that the rate of inflation will be 7 percent in the next fiscal year.
Published: 10-02-2015 07:26