Finance Minister Surendra Pandey unveiled a Rs 337.9 billion budget for the current fiscal year on Saturday.
The budget was announced through an ordinance at the National Planning Commission Hall in the presence of the prime minister, cabinet ministers, senior government officials, leaders of ruling parties and economists, but representatives of the opposition were not present.
“It is not a happy moment for me to bring the budget while the parliament is still functional,” Minister Pandey said delivering the budget, “but I am obliged to fulfil my duty as a finance minister.”
He said the budget has given continuity to the previous fiscal year's development programmes and will keep the national economy afloat. He claimed he had presented the budget as agreed upon earlier.
The opposition UCPN (Maoist) had prevented him from presenting the budget earlier on Friday, accusing the government of bringing the full budget against what was agreed upon in closed door negotiations at Gokarna Resort.
In his budget speech, Pandey condemned the Friday incident as being against democratic norms, and termed it as an attempt to ravage the country’s economy and make Nepal a failed state. He announced that the budget briefcase, which the Maoist CA members damaged on Friday, would become part of the national museum.
Of the total outlay, Rs 190.32 billion has been allocated for recurrent expenditure, Rs 129.54 billion for capital
expenditure, Rs 178.61 billion for development programmes and Rs 159.29 billion for general administration. A sum
of Rs 1.88 billion has been allotted for the allowances of the PLA and management of the cantonments.
The budget has projected 4.5 per cent economic growth in 2010/11 and aims to limit inflation to 7 per cent.
Economist Bishwambhar Pyakurel claims inflation will be much higher than expected as the budget has been announced late, delaying economic activities.
As this budget was presented by a caretaker government, the new government is expected to readjust the budget according to its own plans and programs.