Budget Size: Rs 15.32 kharba
Current Expenditure: Rs 9.57 kharba (62.4%)
Capital Expenditure: Rs 4.08 kharba (26.6%)
Financing: Rs 1.67 kharba (11%)
Tax revenue: Rs 9.81 kharba
Foreign Grant: Rs 57.99 arba
Foreign Debt: Rs 2.98 kharba
Internal Debt: Rs 1.95 kharba
Inflation to be controlled under 6%This year's major updates:
Growth Rate: 7%
Inflation: 4.5%
This year has witnessed highest number of tourists visits.
Import increased by double in the first 9 months
2257 branches of BFIs opened this year.
39% decline in workers going abroad
21% rise in remittance
Dr. Yuvraj Khatiwada is currently presenting the budget for the FY 2076/77. Here are the major
announcements:
*Please refresh the page as we will be updating the content as the budget announcement goes
along.
Major policies for upcoming fiscal year:
The major objective of this year's budget is to promote fundamental right of citizens and
upgrade economy of developing countries.
Education
Rs 1.63 kharba for education
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70 districts targeted to receive full literacy rate in upcoming FY
Rs 8.53 arba allocated for constructing 300 schools
Rs 3.19 arba allocated for scholarships
Rs 1.50 arba for volunteer teachers in schools where teachers are not available
Rs 1.92 arba to conduct skill-based training for 83,000 youths
To bring one window policy for operation of all universities
Health
Rs 68 arba for health sector
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Primary service to be made free of cost from all local level medical facilities
All Nepalis to be brought inside health insurance net
Rs 2.20 arba for people under poverty line
52,000 female volunteers will be getting Rs 3000 as travel allowance, for this 15 crore
has been allocated
Rs 5.57 arba for construction of emergency medical facilities in all VDCs
All provinces to have regional hospitals
Rs 1 arba allocated to upgrade of various hospitals
Rs 40 crore allocated to make Bir Hospital of International standard
Smoking prohibited from all public places and public transportation
Construction and labor
Rs 43.46 arba for drinking water
1. Rs 7.39 arba additional fund allocated for Melamchi Drinking water for infrastructure
development
2. PMEP's unemployed individuals will be mobilized in various public works. Rs 5.1 crore
allocated for it.
3. Rs 7.14 arba for employment program
Social security
Rs 64.5 arba for social security
1. Elderly allowance for people above 70 years of age increased from Rs 2000 to Rs 3000
2. 13 lakh elderly people will be benefitted
3. Labor employment agreement is done with the country importing Human Resource and
the initial cost will be bore by the employers
4. Single allowance is increased by Rs 1000 to Rs 2000
5. Retirement center to be established
6. People below poverty line and above the age of 70 will be given insurance worth Rs 1
lakh
7. 3.5 lakhs children below poverty line will be benefited with various government
incentives
Youth and women
1. Youth scientific conference will be conducted in the coming year
2. Women entrepreneurship will be encouraged
Economy-Agriculture
Rs 34.80 arba for agriculture
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Rs 8.10 arba for prime minister agriculture program
Potato and onion production will be increased
50% increment in seed purchase budget to Rs 9 arba
Small farmers will be benefited via SKBBL
Public-private model will be implemented to increase agricultural production
Promote organic farming in all provinces with roof-top farming in city areas
People returned from foreign employment will be encouraged to enter into agriculture
Farmers will be disseminated information about agriculture via apps
Agriculture research centers and colleges will be supported
Irrigation
Rs 23.63 arba for irrigation
1. Weather radar will be brought into operation with Rs 60 crore allocated for 2 more radars
Forestry and environment
Rs 15.49 arba for forestry and environment
1. Declare this FY as afforestation year
2. Fruit-bearing trees and herbs will be sown in open forest areas
3. Each province will have a research and development station for exploring herbs and
plants
4. 116 ponds will be constructed
Land management
1. Land act to be introduced
2. Land bank to be established, where land can be taken in lease
3. Digitization of all land ownership papers and blueprints within 2 years
Cooperative
1. Tax relief for SMEs and agriculture based businesses
2. Cooperatives to be supervised for risk management
3. Cooperative information system to be established
Tourism
Rs 22.68 arba allocated for tourism
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Visit Nepal 2020 to be celebrated and promoted by worldwide promotion
One tourism door policy will be implemented
Adventure tourism will be promoted
Internal tourism to be promoted
Industry
Rs 2.87 arba allocated for industry
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Local products will be promoted and prioritized
Sick industries will be revived by the help of private sector
Made in Nepal products will be made mandatory for gift-giving purpose
5% interest subsidy in bank loans for garment industries
Udayapur cement and Hetauda cement factories will be upgraded
Challenge fund will be started as an initial capital fund for new and small industry
Major export items will be prioritized
Mining sector will be explored
Commerce and supplies
Rs 11.74 arba allocated for commerce and supplies
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Tea branding will be done with auction houses
Dry port in Chobhar and Rasuwagadhi to be established and construction already started
Dry port of Bhairahawa to be upgraded
Anti dumping regulation will be implemented in order to discourage import
Supervision will be strengthened to control fake standard FMCG products
Promoting trade with China
Carteling and syndicate will be eradicated
Infrastructure: Energy
Rs 89.83 arba for energy
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Two big hydro power in all provinces
More than 1 KW electricity is projected to be produced in next fiscal year
Upper Tamakoswhi and Rasuwagadhi hydro project to speed up
1000 MW project to be added in the national grid.
3500 MW production to be expediate including Upper Tamakoshi, Arun and Trishuli
PPP (Public Private Partnership) module will be explored in HEP production
Local government to get budget to produce electricity from waste and garbage
8. Hydro electricity projects that have received licenses but not in operation will be
reconsidered
Infrastructure: Transportation management and highway
Rs 1.53 kharba for transportation management
1. Rs 19.18 arba for express highway (East West Highway). The highway will connect
Rasuwagadhi to Galchi to Thori to the North.
2. Rs 96 crore for upgrading BP highway
3. Rs 1.81 arba allocated for Kathmandu ring road
4. RS 6.27 arba for Nagdunga surung marga (underpass)
5. Suryabinayak and Jadibuti highway to be upgraded
6. Underpass in Baneswor will be constructed
7. 200 bridges to be constructed for which Rs 7 arba is allocated
8. Re 1 duty added in diesel and petrol
9. All the roads to be made at least 2 lane
10. Railways infrastructure will be explored
11. East-west and north-west railway to be developed
12. Rs 7.7 arba to be allocated in order to explore PPP model for monorail and metro in the
valley
13. Engineering staff college to be established
14. Syndicates to be abolished
15. Adequate charging facility for electric vehicles with the initiation of NEA
Housing and Urban development
Rs 43.73 arba for housing and urban development
1. Smart cities to be established in various parts of the country
2. Rs 4 arba allocated for construction of 300 houses under Safe Housing Project
3. Assembly hall with capacity of 3000 people will be constructed in Kathmandu and 5000
capacity in next 3 years
4. Assembly hall with 2000 people in each provinces
5. Open areas of government will be used to construct park and green area
6. Telephone and electricity lines will be kept underground
Earthquake reconstruction
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Rs 1 arba for Sundhara reconstruction within 2 years
Rs 58.95 arba for rehabilation and construction work
Rs 1.41 kharba allocated to reconstruct damages of earthquake
Terai-madesh Sambriddhi program to be continued
Air infrastructure
Rs 15.85 arba for air infrastructure
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TIA to be upgraded into a boutique airport and will be operational 24 hours
First phase of Gautam Buddha Airport will be completed
Rs 8 arba allocated for Pokhara airport
Infrastructure to be developed for the airport without night-flying facility
Sports
Rs 3.99 arba for youth and sports
1. Rs 10 crore allocated for Mulpani cricket stadium, to be completed within 2 years
2. International sports stadium to be constructed in Kathmandu
Communication and media
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Radio Nepal and NTV will be integrated
Cyber security law will be made more strict
Nepal's own satellite will be established
Postal services will be upgraded
Digital Nepal framework to be promoted and will be brought into operation
In coming 5 years all government transactions will be digitized
BFIs, private sector and capital market
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Merger of big BFIS and insurance companies to be promoted
Gold and silver of general public can be deposited in BFIs
National payment gateway to be promoted
Reinsurance policy to be changed
Electricity and drinking water payments to be made fully digital
PAN system to be implemented in share market
SEBON and NEPSE will be upgraded
NRN will be encouraged to participate in capital market
Trustee Act will be prepared
Private sector investment
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Private sector investment processes to be eased
One window policy for all information for private sector investment
Company act, banking act and technology transfer act will be amended and implemented
Hedging funds will be explored
Governance
1. Corruption will be controlled
2. Hello Sarkar will be upgraded and brought in all 7 provinces
Law and order
1. Supreme court and high court infrastructure will be upgraded
2. Free legal services will be provided to people who cannot afford it themselves, violated
women and children
International relations
1. International Sagarmatha Conversation will be conducted
National security
1. Prisons to be upgraded
2. Prison labor to be used in productive sector
3. National identity card system to be developed and completed within 2 years
Emergency fund - Rs 5 arba
Economic plan
1. Government staff salary for gazetted officers and non-gazetted officer to be increased
by 18% and 20% respectively and all other incentives and facilities are kept unchanged
2. Natural resource exploitation to be stopped
3. Tender need to be given after proper supervision
Revenue sources
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VAT rate remains constant
Slight change in import duties
One person one PAN is promoted
Capital Gain Tax (CGT)in share market is decreased to 5%
Single person earning Rs 4 lakh and Couple earning Rs 4.5 lakh is exempted from
income tax
6. CGT in Real Estate is decreased to 5% (sub metropolitan) and 10% in (metropolitan)