Finance Minister Yuba Raj Khatiwada has presented a budget of Rs 1.532 trillion for the fiscal year 2076/77.
He has allocated Rs 957.10 billion (62%) for recurrent expenditure, Rs 408.59 billion (26.6%) for capital expenditure, and Rs 167.85 billion (11%) for debt financing.
It plans to generate Rs 981.13 billion through revenues, Rs 57.99 billion through foreign grant and generate the remaining amount through foreign loans and domestic borrowing.
It aims to achieve an ambitious economic growth rate of eight percent in the upcoming fiscal year.
The federal government will provide Rs 55.30 billion to the seven provinces and Rs 89.95 billion to the local bodies.
The budget has been allocated on the basis of recommendation of the National Natural Resources and Finance Commission, state of human development index, and the state of social inequalities between provincial and local levels, according to Khatiwada.
The government has appropriated Rs 60 million to be spent on projects selected by directly elected federal lawmakers under the constituency infrastructure development program. The projects must be worth Rs 1 million or higher. It was Rs 40 million for each constituency in the last year.
The provinces have also been allocated Rs 33.55 billion and local bodies Rs 123.87 billion in conditional grants.
The elderly allowance has been raised from Rs 2,000 per month to Rs 3,000. The monthly allowances for single women, people with disabilities, dalits and other marginalized communities have also been raised by Rs 1,000.
Basic salary of public servants has been raised by 20 percent for non-gazetted staffers and 18 percent for gazetted officers.
