Nepal government to slash annual budget by 13.59 per cent, say officials

New Delhi: The Nepal government has been forced to slash the annual budget for lack of cash, officials said. According to a report in the Kathmandu Post, the government on 12 February announced it was trimming the annual budget by a whopping 13.59 percent, the largest cut on record, after realising that it would not be able to raise the required funding. “For the first time since 1967-68, the country has witnessed negative growth in revenue collection in the first six months of the fiscal year. Meanwhile, the economy in Nepal which was on the path of recovery following the Covid-19 pandemic has further been hit by the Ukraine crisis. The International Monetary Fund (IMF) noted that the global economic impact of the war in Ukraine is exacerbating existing vulnerabilities and impacting Nepal’s import-reliant economy, increasing inflation, and decreasing international reserves. The war in Ukraine which lead to an increase in oil and food prices has largely impacted the economy in Nepal. Meanwhile, the IMF has said that although the reserves remain adequate but have declined more than anticipated. Despite encouraging signs of recovery, Nepal will need corrective measures to keep the economy firm. A report in the Kathmandu Post earlier said, “The economic growth rate in Nepal is not only disappointing but also depriving. Irrespective of its size, few people have excess over the fruits of its growth. This means the distribution of the fruit of the growth has been skewed. Unemployment is endangering the livelihood of people, corruption is rampant, and anti-corruption mechanisms are ineffective. The living standard of the richest 10 percent has been increasing over the years while that of the rest is deteriorating. The monetary sector is growing, setting up a large number of financial institutions while the real sector is deteriorating.” Read all the Latest News , Trending News ,  Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.