An overview of Budget of Gandaki State 2020-21

Published by Pokhara Research Centre on

The budget is the guideline for annual programming and government policy. In addition, it is a key instrument of economic policy, encompassing policies, programs and activities related to government expenditure, revenue and deficit financing. Tax and non-tax revenues play a key role in revenue collection in order to meet public expenditure requirements. Any difference between government expenditure and government revenue is financed from external (foreign borrowing) and internal sources (bank, non-bank and cash surplus / deficit). As government activities and liabilities increase, deficit financing is a general phenomenon in the budget for each fiscal year.

The Gandaki State Government has come up with 3rd complete state budget. The primary task of Gandaki State is to develop an intuitional mechanism to link and cooperate on projects and programs with local government and federal government which is completely lacking. This does not support the essence of cooperative and comparative federalism. The citizens have not been able to understand properly the presence of State Governments has necessary tiers of the government as most of the required public services facilities are under the purview of local government. The major portion of the revenue is through fiscal transfer from the central government and the revenue sharing. The internal sources of revenue are small in amount as it has not been able to develop and design the mechanism as well as the intuition and human resources required to collect the revenue which are under the purview of state government as well as under shared with local government.


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