It had been 10 months since the Sher Bahadur Deuba government was formed on Bhadra 26, 2009. During this period, the Deuba government had already faced a no-confidence motion once. Although the possibility of the government falling was low for the time being, efforts were ongoing. For that, efforts were made to thwart the policies and programs presented by the government in the joint house.

UML had publicly announced that it would topple the government supported by the Rastriya Prajatantra Party. For that, UML had nominated Lokendra Bahadur Chand, the leader of the RPP parliamentary party, as the Prime Minister. After the proposal to make him the Prime Minister was rejected by the House, UML was trying to make the policies and programs of the government fail.

As part of the same effort, RPP parliamentary party leader Chand was absent during the vote to pass the policies and programs. In a way, the government seemed unstable. To save the government, Deuba had made 16 out of 19 RPP MPs ministers. Even then, some RPP MPs were engaged in a campaign to topple the government.

Ram Sharan Mahat, the Finance Minister of the government, which was based on the foundation of instability, presented the annual budget for the fiscal year 2053/54 on Asad 29, 2053. Mahat presented the budget for the second time after becoming the Finance Minister. The budget for that fiscal year was 57 billion 565.615 thousand. A budget of 51 billion 647.8 million was presented for the fiscal year 2052/053. After the collapse of the nine-month UML government in 2052 Bhadra, Mahat presented the first budget for the fiscal year 2052/053 on Asoj 29, 2052. At that time, Mahat had changed the budget presented by the then Finance Minister Bharat Mohan Adhikari through an ordinance and presented the budget for that fiscal year.

In the fiscal year 2053/054, Mahat had allocated 24 billion 984.823 thousand for ordinary expenditure and 32 billion 587.83 thousand for development expenditure. Although the size of the development budget at that time was much smaller than today, development expenditure (capital expenditure) used to be more than ordinary expenditure.

The budget presented by the then Finance Minister Bishnu Prasad Poudel in last Jestha for the fiscal year 2082/083 was 1964.11 billion. But 407.89 billion was allocated for development expenditure. The data shows that the budget 29 years ago gave priority to development expenditure. The budget statement at that time gave the message that the state's general expenditure has increased in recent years.

Mahat had allocated 32.6 percent more for development expenditure than general expenditure at that time. He had allocated the most 577 million for education, while it was estimated that 280 million would be spent annually on allowances provided to senior citizens, disabled, helpless widows, and the disabled. 972 million was allocated for health. 257 million was allocated for agriculture and 318 million for irrigation. 1265 thousand was allocated.

Similarly, Rs 4.749 billion was allocated for local development programs. At that time, Mahat had allocated budget for the establishment of the Value Added Tax (VAT) Department and the construction of the Kaligandaki 'A' Project. The VAT Department was being established for the first time. In the fiscal year 2053/054, it was estimated that Rs 31.947 billion would be collected from revenue. Foreign grants were estimated at Rs 6.402 billion and loan assistance at Rs 13.9485 billion.