Himal Press 
KATHMANDU: The Ministry of Finance has revised downward its budget expenditure estimates for the current fiscal year through the mid-term budget review, citing slower capital spending and implementation challenges.
Unveiling the mid-term review on Tuesday, the ministry said the size of the budget has been reduced by 14.04% from the original allocation. The government had presented a budget of Rs 1,964 billion on May 15. It has now been revised to Rs 1,688 billion
According to the revised estimates, the government is expected to spend Rs 1,125 billion on recurrent expenditure, Rs 243.30 billion on capital expenditure, and Rs 319.04 billion under financial management in the current fiscal year.
The government has also revised its revenue targets to Rs 1,298 billion from Rs 1,480 billion. According to the revised estimates, the government expects to raise Rs 1,325 billion from tax revenue. The government has managed to raise only Rs 516 billion from tax revenue in the first six months of the current fiscal year.
Minister for Finance Rameshore Prasad Khanal said capital expenditure could not pick up as expected due to the Gen Z movement and the subsequent transitional period when the government had to focus on institutional stability and election preparations. Khanal said that more than Rs 20 billion has been arranged for election-related expenses. “Some of the budget frozen previously have been released to mobilize resources for the polls,” he added.
Over the first half of the current fiscal year, the government transferred Rs 38.18 billion to provincial governments and Rs 152.46 billion to local levels as fiscal transfers.
Of the total budget allocated for the current fiscal year, 39.14% has been transferred to provinces and 47.60% to local governments.
