KATHMANDU: Minister for Finance Bishnu Prasad Poudel on Saturday unveiled a budget of Rs 1.647 trillion for the upcoming fiscal year 2021/22, which the opposition said a populist and difficult to implement.
Minister Poudel in his briefing at the Singha Durbar, announced that of the aforementioned amount 41.2 percent has been allocated for recurrent expenditure while 22.7 percent, 12.6 percent and 23.5 percent have been designated for capital expenditure, debt financing and transfer to local to the provinces and local bodies, respectively.
The new budget that aims to attain an economic growth of 6.5 percent in the upcoming fiscal year plans to collect Rs 1.024 trillion through revenues and Rs 63.77 billion through foreign grant while the remaining amount will be covered through foreign loans and domestic borrowing.
The government has increased all existing security allowances by 33 percent in line with which the elderly (70+) citizens will now receive Rs 4,000 in allowance per month.
To tackle the looming COVID-19 pandemic, government has allocated Rs 26.75 billion for procurement of vaccines while Rs 4 billion will be spent on purchasing COVID-19 related medical supplies.
Similarly, in an attempt to revive the tourism sector the government has decided to allow 10 days of paid leave to civil servants.
The government in a bid to encourage the use of electronic vehicles has decided to waive renewal and road tax of EVs for next five years while another plan to replace fossil-fuel vehicles in the next 10 years has also been stipulated.
The budget was presented as accordance of Ordinance in the absence of House of Representatives.
The leaders of private sector, including Federation of Nepali Chamber of Commerce and Industry, have welcomed the budget, and hope for proper it’s implementation.
Major highlights
- Old-age allowances reached to Rs. 4000 per month, All social security allowances increased by 33 percent
- Allocation of Rs 26.75 billion for purchase of COVID vaccine
- 50 percent subsidy for oxygen producing companies
- Young enterpreneurs receive loan on 1 percent
- Allocation of Rs. 12 billion on PM employment program
- Poverty Alliviation Program scrapped
- Parliamentarians Development Program scrapped
- Allocation of Rs. 12 billion for construction of chemical factory in three years
- Self-reliant on milk and vegetable.
- Additional support for transforming petro vehicles to electrical one
- Ban on plastic bags below 40 micron
- Replacement all petro vehicles to electric within 10 years
