KATHMANDU, MAR 15 -

The government will introduce a supplementary budget in the next session of parliament to address the recurrent expenditure that has exceeded the target. The government's target of recurrent expenditure for this year stands at Rs. 160 billion.

Finance Minister Surendra Pandey said a supplementary budget was required to adjust the increased recurrent expenditure as a result of increase in the perks and salary of government employees and the additional expenditure for the special security plan after the budget announcement.

He said that the budget would be presented in the next winter session of parliament.

According to the Ministry of Finance (MoF), the government had to bear an additional burden of Rs. 10 billion for increasing salary, dearness allowance and retirement benefits. Likewise, additional Rs. 4 billion was also allocated to strengthen Nepal Police, Armed Police Force and National Intelligence Agency under the government's special security plan.

"The higher recurrent expenditure will be adjusted with the increasing revenue collection that is expected to overshoot the target," said Pandey. The government expects to collect additional Rs. 13 billion and set a target of Rs. 176 billion for this year.

Keshav Acharya, senior economic advisor at the MoF said that the supplementary budget would not incorporate many issues as the new budget will come in two months. "It is however necessary to legalise the increased recurrent expenditure after the budge annoucement."

According to minister Pandey, the supplementary budget will also address some suggestions made by the high level committee regarding the economic crisis facing the country.  Vice chairman of the National Planning Commission Yubaraj Khatiwada, leads the committee which is yet to produce its report. Presently it is studying the looming economic crisis with its huge trade and balance of payment deficit and cash crunch in the banking system. The increased imports against declining exports and excessive lending by banks against the deposits collection resulted in the current crisis.

Posted on: 2010-03-15 12:28

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