NPC sets budget ceiling of Rs. 1,800 billion for FY 2024/25

By Laxman Kafle, Kathmandu, Feb. 21: The National Planning Commission (NPC) has made projections of budget expenditure and resources for the next three fiscal years.

The National Resource Estimates Committee under the NPC has determined the national resource estimates and expenditure limits for the next three fiscal years --- 2024/25, 2025/26 and 2026/27.

The committee formed under the chairmanship of Vice-Chairman of NPC Dr. Min Bahadur Shrestha has prepared a medium-term expenditure structure and budget formulation framework for the bodies that are tasked with the expenditure from constitutional borides, sectoral ministries, provincial governments, local levels and federal reserve funds for the next three fiscal years.

As per the preliminary estimates of the NPC, the total resources of the government for the next fiscal year 2024/25 will be equal to Rs. 1,800 billion. Similarly, for the fiscal year 2025/26 the total outlays will be Rs. 2,100 billion and for the fiscal year 2026/27 it will be equal to Rs. 2,455 billion.

According to the NPC, the budget for the next fiscal year 2024/25 is going to be prepared within the limits of Rs. 1,800 billion. For its source, around Rs. 1,245 billion can be collected from the government’s revenue.

Similarly, the committee estimates that around Rs. 50 billion will be received as foreign grants, Rs. 210 billion as foreign loans and Rs. 295 billion from the domestic borrowing for the next fiscal year.

According to NPC, the revenue growth rate for the fiscal years 2024/24, 2025/26 and 2026/27 is estimated to be 16.4 per cent, 16.8 per cent and 17.3 per cent respectively.

While determining the national resource estimates and expenditure limits for the next three fiscal years, the NPC has set a goal of achieving an economic growth rate of 7 per cent within the next three fiscal years.

Similarly, the Commission estimates that the economic growth rate of 6 per cent in the fiscal year 2024/25 and 6.5 per cent in the fiscal year 2025/26 and 7 per cent in the fiscal year 2026/27.

The Commission has projected inflation to be within the desired limit of 5.5 per cent in the next three years. 

The domestic debt limit is estimated to be 4.5 per cent of the gross domestic product.

The NPC said that the expenditure and resources have been determined for the next three fiscal years giving priority to the projects and programmees for increasing production and productivity and creating jobs.