Finance Minister Pun Affirms No Bias in Budget Allocation and Tax Revisions

Finance Minister Barsha Man Pun has affirmed that the government did not act with bias in the allocation of funds and the revision of tax rates in the upcoming fiscal year's budget. Addressing a press conference regarding the budget announced on Wednesday, Minister Pun emphasized that the government aims to initiate a new phase of economic reform through the budget. "We have scientifically assessed the rationale for revising the tax rates on various items before implementing them," he stated.

The government has proposed a total budget of Rs 1.860 trillion for the fiscal year 2024/25. Of this amount, 61.31 percent is allocated for recurrent expenditure, while 18.94 percent (Rs 352.35 billion) is designated for development projects.

Criticism has emerged regarding the government's decision to exceed the Rs 1.8 trillion budget ceiling set by the National Planning Commission. Minister Pun has also faced backlash for increasing tax rates on electric vehicles. Additionally, revisions of taxes on items such as onions, potatoes, petroleum products, and raw materials for iron rods, as well as the imposition of a luxury tax on airfare and the reduction of grants for imported chemical fertilizers, have sparked controversy.

Minister Pun, however, asserted that the budget was not influenced by any powerful groups. "The government has not introduced a distributive budget this time. Instead, it focuses on allocating adequate funds for viable projects and those nearing completion," he added.

The education sector received the largest allocation of Rs 203.66 billion, an increase of Rs 4.66 billion from the previous fiscal year. Conversely, budgets for six ministries, including the Ministry of Industry, Commerce and Supplies, Ministry of Agriculture and Livestock Development, Ministry of Water Supply and Sewerage Management, and those related to land management, tourism, and communications, have been reduced. Meanwhile, the budget has increased funds for twelve other ministries.

Minister Pun highlighted that the budget prioritizes five transformative objectives rather than dispersing funds across numerous priority sectors. He noted that significant emphasis has been placed on IT-related businesses, with a goal to export IT products worth Rs 3 trillion over the next ten years.