Revolution in South Asia

An Internationalist Info Project

Nepal: The people oriented budget

Posted by n3wday on September 23, 2008

This article was published in the Red Star. To read the entire budget plan click here.

People-oriented budget

On the 19th September, the Finance Minister Dr. Baburam Bhattarai unveiled the historic budget of Rs.236 billion for the Fiscal Year 2008/2009. This is the first budget from the Maoist led coalition government and the new Federal Democratic Republic of Nepal.

The Finance Minister proposed Rs.124.19 billion for development, and Rs. 111.82 million for general administration. Further, he has allocated Rs. 16.18 billion for the principal payment, Rs 91.31 billion for capital expenditure, and Rs 128.51 for recurrent expenditure. The size of the budget of the FDR is about 39.6% more than previous governments. The government has a strategy to build the budget from different sources. One of the sources for the budget is the revenue of about Rs129 billion; foreign assistance Rs 65 billion, foreign grants Rs. 47.09 billion, foreign loans Rs. 18.70 billion and Rs 41.11 million will be the deficit of the budget.

The budget may seem somewhat ambitious, but it is well planned and thought out. Along with the establishment of the Federal Democratic Republic, the budget hopes to address the hopes and aspirations of the people. The Finance Minister has clearly presented the sources and expenditure for the budget, every source is clearly defined. The budget addresses the problems of rural areas as well as the problems of urban areas. It addresses the marginalised, exploited, neglected peoples and ethnic groups of Nepal.

The budget has focussed strongly on education, health, women, hydro electric development, roads, irrigation, and tourism. For socio-economic transformation the government will prioritise infrastructure and industrialisation. The two pillars of socio-economic transformation will be firstly, cooperatives, and secondly, public private partnership. There is great hope that this budget will be able to change things for the better, and the poor of the country will benefit.

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