February 3: Finance Minister Bishnu Paudel has started preparations to reduce the size of this fiscal year’s budget brought by the previous government. After concluding that the election-focused budget introduced by the then finance minister Janardan Sharma cannot be fully implemented, FM Poudel started preparing to amend the budget.

The Ministry of Finance preparing for the half-yearly review of the budget soon.

A source close to the finance minister said that the half-yearly review will be held within the Nepali month of Magh (by mid-February) and preparations are being made to amend the budget at the same time.

The general elections were held on November 20 last year. Due to the election, the current budget has been spent to the maximum, but the development budget has not been spent. Only 16.13 per cent of the capital budget has been spent so far. 

Also, the National Planning Commission has recommended the government bring the next year's budget smaller in size than the current one. Accordingly, the authorities have started making the budget. Finance Minister Poudel has also said that the upcoming budget will decrease in size. In an event held in the capital on Wednesday, Minister Poudel said that the past practice will not be repeated when determining the size of the budget.

“There is a practice of bringing a large budget. However, we are not in favour of it. Our emphasis will be on making structural changes in the economy," he said.

Successive governments have been announcing budget which is large in size, but with poor implementation, the ability of government officials has been questioned. According to the med-term expenditure structure, the government should bring a budget of Rs 1900 billion for the upcoming year, but the National Planning Commission has not given permission to issue such a large budget.

The NPC has suggested to bring a budget of Rs 1500-1600 billion. Finance Minister Paudel is forming a core team to review the current budget and prepare the next budget.

Paudel has brought six joint secretaries to the Ministry of Finance through a recent cabinet decision.