? 
I am not against the budget, but just wondering where the money comes from.
This is the synopsis of budget 2007/08 (source: link provided by Nepe) and my forecast for 2008/09:
|
Uses |
(Rs in billions) | |
|
|
Budget 2007/08 |
Forecast 2008/09 |
|
General Exp. |
94.00 |
124.41 |
|
Development Exp |
76.00 |
100.59 |
|
Total |
170.00 |
225.00 |
|
|
Sources |
|
|
Revenue Collection |
100.00 |
132.35 |
|
Foreign Grant |
28.00 |
37.06 |
|
Foreign Loan |
17.00 |
22.50 |
|
Deficit |
25.00 |
33.09 |
|
Total |
170.00 |
225.00 |
In FY 07/08, 9 months revenue collection was about Rs 71 billion and the government is expected to meet its target .
The budget forecast (my forecast as above) is about Rs 55 billion more than that of the run-up fiscal year. If the revenue trend goes like that the revenue forecast for FY 08/09 does not seem unrealistic. Would the govt. be able to mobilize sources other than the above and get more money? I don't think so.
Let’s see how the budget was allocated for education and S&T in FY 2007/08.
|
|
Budget 2007/08 |
Forecast 2008/09 |
|
Ministry of Education |
23 |
30.44 |
|
Ministry of S & T |
13 |
17.21 |
|
Total |
36 |
47.65 |
Major chunk of the S&T budget was for electricity (Rs 11 b out of Rs 13 billion). In MOE, most of the money was for salary and wages.
If the government is planning to allocate $125 million (~ Rs 8.5 billion) on S&T, with emphasis on bio-fuel development, all incremental forecast of both the ministries should go to S&T, which seems unusual.
Given the unification process of PLA with NA, the govt. would have to allocate more money on security expenses. Which are the other areas that the govt. can be scant for?
I am not a student of economics so I wish I would be wrong.