KATHMANDU, MAY 29 The government has announced a total budget of Rs 2.12 trillion (Rs 2,124.34 billion) for the fiscal year 2083/84. Presenting the budget in the Federal Parliament on Friday, Finance Minister Dr Swarnim Wagle said the allocation prioritises current expenditure, capital investment, and financial management. Of the total outlay, Rs 1.27 trillion (59.8 percent) has been allocated for current expenditure, Rs 431.1 billion (20.3 percent) for capital expenditure, and Rs 422.24 billion (19.9 percent) for financial management. To finance the budget, the government expects Rs 1.4 trillion from revenue, Rs 61.74 billion from foreign grants, Rs 247 billion from external loans, and Rs 410 billion from domestic borrowing. In comparison, the current fiscal year's budget stood at Rs 1.964 trillion, making the new budget about 25 percent higher.

Under the fiscal transfer provisions of the federal system, the government will allocate Rs 61.5 billion to provincial governments and Rs 90.2 billion to local levels as equalisation grants, based on the recommendation of the National Natural Resources and Fiscal Commission.

In addition, Rs 4.6 billion will be provided as supplementary grants to provinces and Rs 8.93 billion to local levels for infrastructure development. Special grants of Rs 3.82 billion and Rs 9.40 billion have also been earmarked for provincial and local governments, respectively.

For federal project implementation, conditional grants worth Rs 49.72 billion will go to provinces and Rs 206.8 billion to local levels.

Meanwhile, Rs 175 billion is expected to be transferred to sub-national governments through revenue sharing mechanisms.