Nepal | August 05, 2020

Province 4 presents most realistic budget

Himalayan News Service
Share Now:

Kathmandu, June 16

Provincial governments presented the budget for next fiscal year 2018-19 in their respective provincial assemblies on Friday. A majority of them, except for Province 4, have presented budgets of an inflated size.

The budget presented by Province 4 is moderate in size and 66 per cent of the total budget has been allocated for capital expenses. Province 4 has presented a budget of Rs 24.02 billion, the smallest in size among all budgets presented by the provinces.

Province 4 will receive Rs 21.33 billion under fiscal transfer (conditional, equalisation, matching and special grants) and revenue-sharing from the federal government. Apart from that, the provincial government will raise Rs 800 million through internal debt and Rs 600 million from the reserves of the current fiscal. Province 4 will collect only Rs 1.4 billion through internal revenue to finance the budget for next fiscal year. It means taxpayers of Province 4 have relatively less burden of taxes levied by the provincial government.

Karnali province has allocated the highest amount for capital expenses, at Rs 21.24 billion or 75 per cent of its total budget. The federal government has allocated Rs 9.13 billion as equalisation grant to Karnali, which is the highest among all the provinces due to its remoteness where cost of development is higher compared to other provinces. The budget of Karnali province is, however, underfinanced.

Among all the provinces, Province 1 has presented the largest budget of Rs 35.93 billion.

Province 3 also has a moderate budget based on the sources of financing. It has presented a budget worth Rs 35.6 billion. The province will receive around Rs 27 billion from fiscal transfer and revenue-sharing.

Meanwhile, Province 7 has allotted more funds under the recurrent expenditure heading, which is 55.4 per cent of the total budget. Among all the provincial budgets, recurrent expenses have surpassed the capital expenses only in Province 7.

The budgets presented by the provinces are aligned with the national priorities. The federal government has expected the capital expenses to hover around Rs 6.5 billion from the consolidated budget of provinces and local assemblies.

From next fiscal, the federal government will transfer 40 per cent of the conditional grant in the beginning of the fiscal year as first tranche and the remaining three tranches will be transferred based on the performance of expenses in the provinces. Similarly, equalisation grant will be transferred in each quarter in four instalments.


A version of this article appears in print on June 17, 2018 of The Himalayan Times.


Follow The Himalayan Times on Twitter and Facebook

Recommended Stories:

More from The Himalayan Times:

MoHP lists swab collection centres in Kathmandu; urges public to follow safety guidelines

KATHMANDU: The Ministry of Health and Population on Tuesday announced 14 swab collection centres to facilitate extensive testing of coronavirus infection in Kathmandu valley at a time when new cases have been on the rise. MoHP has urged the public to visit the swab collection centres from 9:00 am Read More...

Gai Jatra: Festival that honours the memory of those departed

KATHMANDU: Gai Jatra, literally translated to the festival of cows, is observed by bereaved families by taking out procession in memory of the ones they have lost. People, especially children, walk in different costumes, and the processions are also accompanied by traditional bands. Gai Jatra is Read More...

Nepal’s COVID-19 count crosses the 21k mark, 259 new cases detected on Tuesday

KATHMANDU: The Ministry of Health and Population has recorded 259 new cases of the coronavirus infection on Tuesday, taking the nationwide count to 21,009. The new infections were confirmed after testing 7,687 specimens through PCR method across the nation in the last 24 hours. Among the new c Read More...

Nepal COVID-19 Update: 259 new cases, 65 recoveries, one fatality recorded today

KATHMANDU: Nepal’s Health Ministry, in its regular press briefing, shared the latest updates on coronavirus contagion from across the country, and government’s response to the health crisis. As of today, 406,494 tests through Polymerase Chain Reaction (PCR) method have been carried out, w Read More...

Nepal logs one more COVID-19 fatality; death toll reaches 58

KATHMANDU: One more person has succumbed to the coronavirus infection, confirmed the Ministry of Health and Population (MoHP) at its regular media briefing, on Tuesday. A 77-year-old male from Biratnagar Metropolitan City-5, Morang, has died from the highly contagious disease on Monday. The pa Read More...

Reimpose lockdown, issue curfew order if necessary; strictly implement security protocol: Experts to PM Oli

KATHMANDU: At a meeting called to discuss government's further steps to contain the spread of Covid-19, experts suggested that the government should reimpose lockdown to ensure that the pandemic is checked. Some health experts even suggested Prime Minister KP Sharma Oli, who had convened the meeting Read More...

Bangladesh board denies not paying players ICC prize money

DHAKA: The Bangladesh Cricket Board (BCB) on Tuesday dismissed allegations from a players' body that its international cricketers have not been paid all their prize money. The Federation of International Cricketers' Associations (FICA) said in a report that the Bangladesh players have not bee Read More...

Prominent Muslims to grace Hindu temple ceremony on contested India site

LUCKNOW: In a gesture of reconciliation, two prominent Muslims who lived through deadly riots following the razing of a mosque in northern India in 1992 plan to attend the foundation-laying ceremony for a Hindu temple on Wednesday on the same site, they said. Prime Minister Narendra Modi, who Read More...