Finance minister Dr.Yuba Raj Khatiwada presented the budget for F.Y.2077-78(2020/21) on 28th May 2020 at the Federal Parliament at 4 pm.
The total size of the budget is Rs.14.7 Kharba (1.47 Trillion) which is 34% of the total GDP of the country. The government aims to achieve 7% growth rate and 7% inflation in the coming year.
The proponents of the budget have termed this budget as realistic and pragmatic. The total size of the budget has decreased from 15.3 Kharba to 14.7 Kharba i.e. by 4%. They are of the view that the finance minister has become realistic by reducing the size of the budget which has presumably happened for the first time in the history of budgets in Nepal. Further, they view 7% growth is achievable given the decreased denomination in current year as a result of the pandemic.
On the flip side, the opponents of the budget view that the budget unrealistic as the revenue & loans (source of fund) assumed in the budget are far from achievable given the impact of COVID-19 in the economy.
Both the parties (proponents & opponents) have their perspective and reasonable backing. However, in this document, we will put the facts of the budget as it is for the purpose of your review and judgement
Following the overview, you will be presented with some basic data analytics of the budget, past trends and sector wise schemes brought by the budget. Tax amendments included in the Finance Act are not included in this document as we look forward to producing a separate document covering the amendments.