Major Highlights of Fiscal Year Budget 2078/79

Similar to last year budget, the Government has set NRs. 122.77 Billion to Health sector which is the major concern for revitalizing the national economy and achieve the growth rate of 4%

The Finance minister Bishnu Prasad Paudel a presented Nepal’s Annual Budget for FY 2078-79 on May 29, 2020.  The NPR 1.647 trillion budget covered all the sectors with key focus reviving the economy following the effects of COVID-19 pandemic, which also includes numerous ambitious programs while also repeating some unimplemented programs from previous years. i.e. NRs. 16 Kharab, 47 Arab and 57 Crores.

Budget Allocation

In the budget speech, government displayed a 11.73% increase in budget of previous year’s. It dedicated Rs 678.61 billion (41.2%) as Current expenditure, Rs 374.26 billion (22.7%) as Capital Expenditures and Rs 594.70 billion (36.1) for financing provision and base grants, where Financial provision was of Rs. 386.71 billion and Base grants worth 207.99 billion.

Source of Fund

Towards adding to the government’s treasury, the new budget is looking at Rs. 1,024.90 billion revenue collection, Rs. 63.37 billion from foreign grants, Rs. 309.29 billion from foreign loans and Rs. 250.01 billion from domestic loans. It meant by Budget Deficit is NPR 559.30 billion (6.63% increased on Y-o-Y basis).

Major Highlights

  • The Ministry of Education has received the biggest chunk of the budget: Rs 180.04 billion
  • Set out Rs. 26.75 billion for all individuals to be vaccinated against coronavirus.
  • Grant a 50% subsidy to both private and community hospitals for the installation of oxygen plants.
  • Senior Citizens Allowance increased from Rs 3000 to Rs 4,000
  • All social security allowances hiked by 33 percent
  • Prime Minister Employment Programme to continue and 200,000 jobs to be created, where allocated budget is NRs. 12 Billion.
  • Light petrol vehicles to be replaced by electric vehicles by 2088
  • Up to Rs 2.5 million in loans as much as 5% rate of interest with instructional credentials of above graduate degree as collateral
  • Loan as much as Rs 2.5 million for startups at 1% rate of interest
  • Loan of 80,000 rupees for college students to purchase laptops at 1% interest rate
  • Plans For Digital Maps And Smart Krishi
  • Only 10% VAT amount for the goods purchased and paid via QR code.
  • Rs. 45.09 billion on Agricultural sector
  • Rs. 122.77 billion on Health sector

Source : Redbook 2078/79 from Ministry of Finance, Nepal
www.mof.gov.np
The Kantipur Daily

Note : 1 Kharab : 100 Billion
1 Arab : 1 Billion
1 Crore : 10 Million
For Eg : 16 kharab, 47 Arab and 57 Crore >>> 1,647.57 Billion or 1.647 Trillion

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