Naya Nepal Naya Blog

The Ministry of Finance (MoF) has prepared a special budget of Rs 110 billion ready to be tabled at the parliament anytime to ensure smooth functioning of the government before the government to be formed presents a full budget.

Finance minister Surendra Pandey informed a meeting of the UML parliamentary board on Saturday that the size of the special budget would be Rs 110 billion.

According to Pandey, in the special budget Rs 53 billion had been earmarked for regular expenses, Rs 26 billion for development and Rs 31 billion for reimbursement of interest and principal on loans.

The MoF prepared a special budget as a caretaker government cannot present a full budget as per the provisions in the interim constitution. The Madhav Kumar Nepal led government has been relegated to caretaker status after Nepal resigned through a televised address on Wednesday.

A cabinet meeting on Thursday, one day after the government stepped down, had decided to present a special budget to address the contingency needs if a new government is not formed on time.

There are provisions the government can spend one-third amount proposed in the full year's budget as advanced budget. The size of the special budget was determined based on this provision.

A special budget was presented three years ago when Girija Prasad Koirala was heading a caretaker government following the elections to the Constituent Assembly (CA).