Country Report Nepal May 2011

Outlook for 2011-12: Fiscal policy

The 2010/11 budget calls for total expenditure of NRs337.9bn (US$4.5bn), while resources are expected to amount to NRs281.9bn. The projected fiscal deficit is to be funded by domestic borrowing and, to a lesser extent, foreign grants. Spending plans focus heavily on infrastructure development, while fuel and agricultural subsidies will continue. The government is also keen to shore up its fiscal position by increasing its revenue base.

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