Nepal | August 04, 2020

Provinces table budget for upcoming fiscal

Focus on health, infrastructure development, agriculture modernisation and job creation

UMESH POUDEL
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KATHMANDU, JUNE 15

Similar to the federal government, all the seven provincial governments presented their respective budgets for fiscal 2020-21 in their provincial assemblies with major priority accorded to development of health infrastructure, including steps to tackle the coronavirus pandemic, job creation, skill development and development of agriculture sector.

The provincial governments have presented their budget with an aim to restore economic growth which has contracted in the current fiscal.

The Province 1 government presented a budget worth Rs 40.89 billion for fiscal 2020-21.

The budget presented by Minister of Financial Affairs and Planning Indra Bahadur Angbo has given due priority to the health sector and employment generation. It has also focused on promotion of agriculture and infrastructure development, among others. The government plans to utilise Rs 18.93 billion as recurrent expenditure and Rs 21.92 billion as capital expenditure. For this fiscal, Province 1 had tabled a budget of Rs 42.20 billion.

Comparative figures

Province FY 2018-19 FY 2019-20 FY 2020-21
1 Rs 35.93bn Rs 42.20bn Rs 40.89bn
2 Rs 29.78bn Rs 38.72bn Rs 33.56bn
Bagmati Rs 35.61bn Rs 47.6bn Rs 51.42bn
Gandaki Rs 24bn Rs 32bn Rs 34.84bn
5 Rs 28.9bn Rs 36.41bn Rs 36.35bn
Karnali Rs 28.28 34.35bn Rs 33.74bn
Sudurpaschim Rs 25.6bn Rs 28.16bn Rs 33.38bn
Source: Provincial governments

Likewise, the Province 2 government tabled a budget of Rs 33.56 billion for next fiscal year. It aims to utilise Rs 15.42 billion as recurrent expenditure and Rs 17.97 billion as capital expenditure. Minister for Economic Affairs and Planning Bijaya Yadav has given priority to education, development of tourism infrastructure, health and agriculture sectors. The Province 2 government had presented a budget worth Rs 38.72 billion for the ongoing fiscal.

In Bagmati Province, Minister of Economic Affairs and Planning Kailash Prasad Dhungel tabled a budget of Rs 51.42 billion for the next fiscal.

It focuses on development of physical infrastructure, improvement of health sector, employment generation, among others. The government has allocated Rs 26.28 billion under recurrent expenditure and Rs 25.14 billion as capital expenditure. It has allocated substantial funds for construction and completion of national pride projects that fall in the province. Bagmati Province had presented a budget worth Rs 47.6 billion for the ongoing fiscal.

Meanwhile, Gandaki Province presented a budget worth Rs 34.84 billion for next fiscal.

The budget was tabled by Kiran Gurung, minister of economic affairs and planning. It gives priority to strengthening health sector, tourism revival plan, infrastructure development, agriculture and job creation. The government has earmarked Rs 14.34 billion under recurrent expenditure and Rs 19.99 billion under capital expenditure.

Similarly, Province 5 government presented a budget of Rs 36.35 billion for the upcoming fiscal. Chief Minister and Minister for Economic Affairs and Planning Shankar Pokhrel presented the budget today prioritising improvement of health sector, employment generation and infrastructure development. The government has allotted Rs 12.59 billion as recurrent expenditure and Rs 18.61 billion as capital expenditure. With high priority to commercialising the agriculture sector in the province, the government has said it will address the unemployment problem through agriculture.

Province 5 government had presented a budget of Rs 36.41 billion for the ongoing fiscal.

Minister of Economic Affairs and Planning of Karnali Province Prakash Jwala unveiled a budget worth Rs 33.74 billion for the next fiscal giving priority to agriculture, employment generation, tourism and physical infrastructure.

The government aims to utilise Rs 11.67 billion as recurrent expenditure and has earmarked Rs 19.6 billion for capital expenditure. The government had presented a budget of Rs 34.35 billion for the ongoing fiscal.

Sudurpaschim Province has tabled a budget of Rs 33.38 billion for the next fiscal. The budget was tabled by Economic Affairs and Planning Minister Jhapat Bahadur Bohara, aiming to utilise Rs 14.18 billion as recurrent expenditure and Rs 16.75 billion as capital expenditure. The Sudurpaschim Province has given high priority to health sector, agriculture modernisation, infrastructure development, drinking water, irrigation and energy. It had tabled a budget of Rs 25.6 billion for the ongoing fiscal.

As per the provision of the Intergovernmental Fiscal Management Act, the provincial governments have to present their budget in the provincial assemblies by mid-June and local bodies have to present their budget in the local assemblies 20 days ahead of the next fiscal year calendar.

Provincial governments rely on fiscal transfer from federal government, revenue shared from divisible fund and their own revenue sources (both tax and non-tax) to finance the budget. While the provinces can raise domestic debt to finance their budget, they have to obtain approval from federal government to do so.

A version of this article appears in e-paper on June 16, 2020, of The Himalayan Times.

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