The burden of subsidies on fuel, fertilizer and food have significantly increased on government on account of rise in international prices and increase in Minimum Support Price.

According to medium-term expenditure projections under the Fiscal Responsibility and Budget Management, in revised estimation of Budget for 2011-12, there was a provision of 2,08,503 crore rupees for major subsidies, which represents a growth of 26.7 per cent over 1,64,516 crores rupees in 2010-11.

It is projected that with suitable policy interventions the subsidy expenditure will reduce from 1.9 per cent of Gross Domestic Product, GDP in budget estimate 2012-13 to 1.6 per cent of GDP by 2014-15. This is critical for successful fiscal consolidation.

The fertiliser subsidy will reduced to 65,735 crore rupees in 2014-15. It was 67,199 crore rupees in 2011-12. However, the food subsidy will increase in 2014-15 to 95,000 crore rupees from 72,823 crores in 2011-12.

The subsidy on petroleum will be stabilized to 43,580 crore rupees, which was 68,481 crores rupees in 2011-12.

In Nepal, the caretaker government has announced one third budget of 161.02 billion nepali rupees for the fiscal year 2012-13 on Sunday. Finance Minister Barshaman Pun announced the budget at program in the National Planning Commission in Kathmandu which was brought through an ordinance after the President signed the proposal earlier Sunday.

Presenting the budget , Mr. Pun said that the economic growth in the current fiscal year was the highest in three years and assured that the government would continue big projects in the country despite the announcement of one-third of budget.

AIR correspondent reports, the caretaker government today brought a budget through an ordinance as the financial year just concluded today and the new financial year begins tomorrow in Nepal .The government had been trying to bring a complete budget but the opposition had opposed it and as the Finance Minister Barshman Pun put it this was done for the sake of agreement with other political parties. He claimed that the government does not want to start a war over the issue of budget but not to take it as the government’s weakness, but a sacrifice. Mr. Pun said the government will continue it’s three pillar economic polity which calls for public -private cooperative partnership and will remain active to create an investment friendly environment. . The budget includes three billion rupees for elections to a fresh Constituent Assembly , also more than three billion for the rehabilitation package of former Maoist combatants who opt for voluntary retirement and another here billion for the establishment of the National Development and Security Directorate after the integration of the former Maoist combatants.