"There are mixed results in half-yearly budget progress"

KATHMANDU, FEBRUARY 9: Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel has stated that the half-yearly progress of the fiscal budget has yielded mixed results.

Presenting the "Half-Yearly Assessment Report of Budget Implementation for the Fiscal Year 2024/25" at the National Assembly today, he noted that geopolitical tensions and other international factors have disrupted supply chains, expected loan expansion has not materialized, and the construction sector's sluggish performance has posed challenges to achieving the targeted economic growth.

Paudel remarked, "Despite the government's policy measures and reform efforts, along with external balance, sufficient liquidity, and assurances of low-interest rates, economic activities are expected to increase, bringing us closer to this year's growth target."

He highlighted that ongoing improvements in public financial management, along with the implementation of international accounting and reporting standards, have enhanced the transparency and reliability of the financial system.

During the review period, overall expenditure increased by 17.66 percent compared to the same period last fiscal year. However, capital expenditure, considered a key driver of economic growth, has shown little improvement and is expected to remain sluggish until the midpoint of the fiscal year.

Finance Minister Paudel also informed the Assembly that the revised total spending estimate for the current fiscal year stands at Rs 16.92 trillion, down from the initial estimate of Rs 18.60 trillion.