KATHMANDU, Feb 13: The government has reduced the size of the budget for the current fiscal year.

The then finance minister Janardan Sharma had presented a budget of Rs 1.793 trillion. The new government has reduced the size of the budget by 14 percent. Deputy Prime Minister and Finance Minister Bishnu Paudel reduced the size of the current fiscal year's budget to Rs 1.549 trillion.

Finance Minister Paudel, while presenting the mid-term budget review report in the House of Representatives on Sunday, announced that the size of the budget has been reduced.

He also made it clear that the target of 8 percent economic growth rate set for the current fiscal year will not be achieved. He made such a remark while submitting the half-yearly review of the budget to the House of Representatives on Sunday. 

Finance Minister Poudel said that although there has been some improvement in the tourism sector, the economic growth target for the current fiscal year is unlikely to be met as the manufacturing industry does not seem to be able to operate at full capacity.

Finance Minister Paudel also said that the country's economy is under extreme pressure due to the low revenue collection as a result of the government’s import restrictions and the slowdown in supply chain. FM Paudel said that the current and long-term obligations of the government have added more pressure and the economic growth target set by the government will not be achieved.

Finance Minister Paudel has said that the strict policy seen in the world economy has added challenges to Nepal's economic policy. He mentioned that rice production will increase only slightly compared to last year.

Finance Minister Paudel admitted that although the target was to keep inflation within the limit of 7 percent in the budget, it has reached 7.26 percent.