Every year when the budget is presented, the primary concern for ordinary citizens should be what it offers them in terms of dignified living and employment opportunities. However, in recent years, public interest in the budget has waned because it focuses on trillion-rupee expenditures while neglecting the basic rights and livelihoods of common people.
Moreover, over the past 20 years since the establishment of the republic, the disconnect between citizens' aspirations and the budget has further reduced public interest in it.
During Nepalkhabar’s TATKALAI episode, former Finance Minister Surendra Pandey was asked about what the upcoming fiscal year’s (2082/83) budget has in store for ordinary citizens. In response, he stated, "While the budget hasn't directly benefited common citizens, it hasn't raised taxes either. However, increasing dearness allowances for employees may lead to price hikes in the market."
On Thursday, Finance Minister Bishnu Paudel presented a budget of NPR 1.964 trillion for FY 2082/83. The budget allocates 60.1% (NPR 1.18098 trillion) for recurrent expenditure, 20.8% (NPR 407.89 billion) for capital expenditure, and 19.1% (NPR 375.24 billion) for financial management.
The estimated revenue sources include NPR 1.315 trillion from taxes and NPR 53.45 billion in foreign grants. However, with a deficit of NPR 595.66 billion, the government plans to cover NPR 233.66 billion through foreign loans.
Pandey, however, warns that based on the current fiscal year’s trends, the government may miss its foreign loan and grant targets. He also doubts the revenue collection target, citing that only NPR 962 billion has been collected by May 29, with just one and a half months left to meet the revised target of NPR 1.1 trillion.
Finance Minister Paudel acknowledged the deficit and plans to cover NPR 362 billion through domestic borrowing. Pandey warns that excessive domestic borrowing could shrink private-sector liquidity and strain the economy. He also criticizes the lack of new programs in the budget and expresses skepticism about its effective implementation.
While the budget avoids tax hikes, it fails to address citizens' core needs, relies heavily on uncertain foreign loans, and risks economic contraction due to increased domestic borrowing. Public trust in the budget continues to decline as it remains disconnected from people's aspirations.
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