Prioritised the health sector in the wake of Coronavirus crisis and raised the budget for health ministry to Rs 90.69 billion for the fiscal year.
The Finance minister Yubaraj Khatiwada presented Nepal’s Annual Budget for FY 2077-78 on May 28, 2020. This is the Third budget tabled by Mr. Khatiwada as the Finance Minister and 2nd year of 15th Plan implementation. .The NPR 1.474 trillion budget covered all the sectors with key focus reviving the economy following the effects of COVID-19 pandemic.
Summary of Fiscal Year 2076/77
|Per Capita Income||$1085|
|Foreign Currency Holdings||1156 Billion|
|Export Increased by (Last 9 months)||12.9%|
|Import decreased by (Last 9 months)||7.5%|
|Government Expenses||1073 Billion|
In the budget speech, government displayed a 3.8% decrease in budget of previous year’s. It dedicated Rs 948.94 billion (64.4%) as Current expenditure, Rs 352.91 billion (23.9%) as Capital Expenditures and Rs 172.79 billion (11.7%) for financing provision principal payment of loans.
Source of Fund
Towards adding to the government’s treasury, the new budget is looking at Rs. 889.62 billion (60%)revenue collection, Rs. 60.52 (4.1%) billion from foreign grants, Rs. 299.5 (20.3%) billion from foreign loans and Rs. 225 (15.6%) billion from domestic loans. It meant by Budget Deficit is NPR 524.5 Billion.
Level wise Budget Allocation
|Level||Allocation||Allocated Budget (Rs.)|
- Prioritised the health sector in the wake of Coronavirus crisis and raised the budget for health ministry to Rs 90.69 billion for the fiscal year.
- Rs 1,435 billion in Foreign Direct Investment has been pledged through the Insurance Board Nepal.
- Agricultural Sector and Irrigation Sector : Rs. 41.40 billion and Rs. 27.96 billion respectively.
- Sana Kisan Bikas Bank Rs. 3.60 billion to Sana Kisan Bikas Laghubitta Bittyasanstha Sanstha to provide assistance to cooperatives.
- Rs 1.26 billion for tourism infrastructures and to encourage local tourism.
- At least 1 industrial gram to be established, in every Province. Rs. 2.64 billion has been allocated to established 130 such grams.
- Rs 13.96 billion has been allocated for interest, loan and insurance subsidy.
- Rs 171 billion has been allocated for education, science and technology sector.
- Rs 2.36 billion budget allocated for Youth and Sports
- 1300 MW electricity production to be added in upcoming fiscal year. City Development Ministry has been disbursed Rs 37.80 billion. Rs 1.80 billion allocated for infrastructures to be developed in 30 cities of each province. Alternative electricity production program has been allocated Rs 4 billion.
Source : Redbook 2077/78 from Ministry of Finance, Nepal
The Kantipur Daily