Pragmatic Budget

The government has unveiled Rs. 1,860 billion budget for fiscal year 2024/25, starting from mid-July. It is 6.2 per cent higher than the unrevised budget of the current fiscal year. Addressing the joint session of the federal parliament on Tuesday, Finance Minister Barsha Man Pun said that of the total budget, Rs. 1140 billion (61.31 per cent) would be spent on recurrent expenses, Rs. 352 billion on capital expenditure and Rs. 367 billion on financial expenditure. The budget seeks to achieve 6 per cent economic growth and keep inflation at 5.5 per cent. The recurrent expenditure has been reduced by more than one billion rupees while capital expenditure has been increased by more than Rs. 50 billion compared to the current fiscal year budget. It targets to collect a whopping 1260 billion in revenue, Rs. 52 billion as foreign grants, Rs. 200 billion as foreign loan and Rs. 300 billion as internal loan.