Comparision with previous FY
Finance Minister Bishnu P. Paudel
Jestha 15, 2078 (29 May 2021)
NPR 678.61B (41.2%)
NPR 386.71B (23.5%)
NPR 347.26B (22.7%)
NPR 207.97B (12.6%)
Source of Financing (in Billions)
Budget under Sectors (in Billions)
General Public Service
Recreation, culture and religion
Startups are poised to get a tax waiver for the next 5 years
A refinancing stimulus of NPR 13 billion will be delivered by the government
Electricity customers, who consume less than 20 units, stand to get 100% waiver
100% waiver for water consumers who consume only 20,000 liters per month
The film, handicraft, aviation, media, advertising, health club, beauty parlor get license and renewal waiver
NPR 14B for the Ministry of Labor, Employment and Social Security
NPR 45.0B for the Ministry of Agriculture
NPR 180.04B for the Ministry of Education
NPR 1.20B for women, children, and senior citizens
NPR 7.60B for concessional loans to farmers
NPR 12B to establish chemical fertilizers
NPR 4B to procure health and medical supplies to combat COVID-19 pandemic
NPR 400 million for skill development training
NPR 2.5 million for the security of educational security certificate
NPR 4,000 for senior citizen allowance per month
33% rise in all types of social security allowances
50% subsidies in farm insurance premium
NPR 12,000 transport allowance to the health volunteers
The total budget of the Ministry of Health and Population of NPR 122.77 billion
NPR 26.75 billion for COVID-19 vaccines
NPR 37.53 billion for COVID-19 control and treatment
monthly allowance of NPR 12,000 will be given to female community health volunteers
NPR 180.04 billion has been dedicated to the education ministry
The monthly salary of early childhood development teacher is fixed at NPR 15,000
Mobile Device Management System will be brought into operation from Shrawan 1 to control the use of illegal mobile sets as well as the criminal activities
A National Payment Switch will be established to facilitate payment and clearance of transactions within Nepal
Broadbank internet facility to be expanded up to 60% public schools
NPR 33 arba 55 crore allocated for Earthquake Reconstruction
NPR 41 arba 20 crore allocated for Housing, Building And Urban Infrastructure, up from NPR 37 arba 80 crore
Up to NPR 2.5 million of a loan at a interest rate of max 5% with academic credentials for bachelors as collateral
Loans Up to Rs 2.5 million, a 1% interest rate for startups, will be doled out to interested startups
A loan of NPR 80,000 will be given to students to procure laptops
NPR 1 arba 20 crore allocated for Women, Children, and Senior Citizens, while it was NPR 1 arba 14 crore in the FY 2020/21
NPR 43 arba 54 crore allocated for Drinking Water and Sanitation, while it was NPR 43 arba 10 crore in the fiscal year 2020/21
Monthly salary of Govt. employees increased by Rs. 2000
Personnel’s allowance up by 15% for Nepal Police and Armed Police Force
The Ministry of Industry, Commerce and Supplies has been allocated NPR 13.58 billion.
NPR 2 billion has been allotted for industrial infrastructure development.
Remedy to industries affected by Covid-19, including tourism, agriculture and small businesses by providing income tax exemptions from 50-90%
Scrapping visa fees for foreigners.
The excise duty on Electric Vehicles (EV) has also been abolished and the customs duty has been reduced.
Tax benefits and free land leasing facility for the top 10 EV manufacturers to set up factories in the country.
Salaries and Allowance
The monthly salary is poised to go up by NPR 2,000 for Govt. Employees
Personnel's allowance up by 15% for Nepal Police and APF
NPR 15.34 billion is set to be spent on East-West Highway expansion
NPR 10.3 billion will be expended on Railway development
Kathmandu-Terai fast track will be the recipient of NPR 8.15 billion
The postal highway will be upgraded at the cost of NPR 6.39 billion
Airports are to be built and renovated with a budget of NPR 20.31 billion
NPR 43.54 billion has been dedicated to water supply network
The highway of Madan Bhandari will be revamped at the cost of NPR 3.20 billion
NPR 45.09 billion for the agriculture sector.
NPR 7.98 billion was allocated to the Prime Minister Agriculture Modernization Project.
NPR 12 billion has been allocated as a grant for the production of chemical fertilizers and made provisions to avail up to 50% capital grant for pesticide factories.
Subsidies on seeds
Establishing agricultural markets and E- Haat Bazaars in every province
Farming of cash crops around highways
Key projects and announcements
The central park from Narayanahiti to Tripureshwar in Kathmandu
Electric vehicles get a boost as road tax get waived for the next 5 years
Plan to replace fossil fuels vehicles in the 10 years
The new budget focuses largely on addressing the control and treatment of COVID-19 with emphasis on procuring vaccines, building the necessary infrastructure, and ensuring the availability of medical supplies including oxygen. Similar plans were made in the previous budget as well, but the progress was very disappointing. Considering that, although a huge chunk of the budget has been allocated for vaccine procurement, it is not clear on how the government actually plans of procuring them. Thus, it may become challenging for the government if plans are not laid out from the start.
The budget seems quite ambitious and while there are a lot of positive aspects that the budget has addressed, the endorsement might be quite challenging. Another difficult challenge can be seen as achieving the government’s economic growth rate target of 6.5 percent.