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Nepal Budget FY 2078/79 (2021/22) Cheat Sheet by

Nepal Budget FY 2078/79 (2021/22) Highlights


Total Budget
NPR 1647.57B
Compar­ision with previous FY
11.73% higher
Announ­cement By
Finance Minister Bishnu P. Paudel
Announ­cement On
Jestha 15, 2078 (29 May 2021)
Recurrent Expend­iture
NPR 678.61B (41.2%)
Fiscal Transfer
NPR 386.71B (23.5%)
Capital Expend­iture
NPR 347.26B (22.7%)
Financial Management
NPR 207.97B (12.6%)

Source of Financing (in Billions)

Foreign Borrowing
Domestic Borrowing
Foreign Grant

Budget under Sectors (in Billions)

General Public Service
Economic Affairs
Social Protection
Enviro­nment Protection
Recrea­tion, culture and religion

COVID-19 Relief

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

Key Takeaways

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

ICT sector

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

Physical Sector

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

Social Security

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

Infras­tru­cture plans

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.


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