Banks and consumers are suffering as a result of the budget crisis


Spending on behalf of the government has been delayed for the past eight days due to the failure of the replacement bill to pass through Parliament on schedule. As a result, it has had an impact on the liquidity of the banks as well as their interest rates.

An earlier version of this article stated that the administration had introduced a replacement bill on September 10 by altering the budget ordinance introduced by the former KP Sharma Oli-led government.

Despite the fact that the bill had to be by the Parliament by September 15, the government failed to meet this deadline.

The Appropriations Bill, which was passed by Congress and forwarded to the National Assembly, has already been sent to the National Assembly.

The path for the government to spend the budget will be paved once the bill has been by the Upper House and sent to the Lower House for consideration before being sent back to the President for signature. According to Rojnath Pandey, a representative for the Parliamentary Secretariat. The meeting of the National Assembly is planned to take place on Thursday afternoon.

He stated that the Financial Bill and the Bill to Raise Public Debt will require some time before they are approved.

He stated that all bills pertaining to the Budget will be endorsed by the Senate by September 27th.

Despite the fact that these two billsโ€“the Financial Bill and the Bill to Increase Public Debtโ€“have yet been passed, the government will not be barred from spending the money in the budget.

Meanwhile, if the administration believed that the budget would be by the Parliament, it had the option of bringing the Advanced Expenditure Bill to the House of Commons and having it approved by the House of Commons, which would allow the government to carry out its -to-day operations.

Meanwhile, the administration was prohibited from spending any money from the budget for the next eight days. But on September 14, after receiving from the Financial Comptroller General Office, the government had already sent pay and allowances, among other things, to the affected employees.

Suman Raj Aryal, Financial Comptroller, stated that the government was only experiencing minor difficulties with tiny expenses because it had already managed other types of budget in August.

According to experts, the government’s refusal to spend the budget for a week has had a negative impact on the liquidity and interest rates of the financial institutions.

Rameshwor Khanal, a former Finance Secretary, stated that the government’s refusal to spend the budget for a week has had a negative impact on the liquidity of the economy and has increased the interest rates charged by banks.

He believes that the increase in interest rates will have a negative impact on industrialists and businessmen, as well as on the general consumer population.

“After the government failed to spend the budget for a week, banks were given the opportunity to raise interest rates,” Khanal explained.

Meanwhile, since the budget crisis began on September 15, the government has collected almost Rs 15 billion in income and spent approximately Rs 210 million.

The government had collected over Rs 180 billion in income by the 12th of September in the current fiscal year, according to official figures. As of the 19th of September, the government had received a total of Rs 195 billion.

According to official spending data, the government spent Rs 89.73 billion on September 15 and another Rs 89.99 billion on September 21.

An to the Constitution mandates that the Federal Reserve Fund be used only when a bill has been passed by Parliament authorising the expenditure of funds from the Federal Reserve Fund.

An order presenting the federal budget for the fiscal year 2021/22 was delivered on May 29 by Bishnu Paudel, the former Finance Minister of Nepal.

Because to the change in administration, incumbent Finance Minister Janardan Sharma has introduced a replacement bill for the budget ordinance that was previously introduced.

Despite the fact that the government was required to replace the budget established through the ordinance until September 15, the government did not do so.

As a result, the government found itself in a state of financial impasse for the time in the country’s history.

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