For the fiscal year 2021/22, the government unveils the budget of 1. 647 trillion

The Government has unveiled the budget of Rs 1.647 trillion for the fiscal year 2021/22 on Saturday.

Minister for Finance Bishnu Poudel made public the budget for the coming fiscal year from the Office of Prime Minister and Council of Ministers, Singha Durbar.

Out of the total budget, the government has allocated Rs 678.61 billion as recurrent expenditure and Rs 347.26 billion as capital expenditure. Likewise, Rs 207.97 billion has been set aside for financing purposes.

The budget plans to generate Rs 1.024 trillion through revenues, Rs 63.37 billion through foreign grants and generate the remaining amount of Rs 559 billion through foreign loans (Rs 309 billion) and domestic borrowing (Rs 250 billion).

The government brought the budget through ordinance. 

President Bidya Devi Bhandari brought three ordinances—Economic Ordinance, Appropriation Ordinance and National Debt Raising Ordinance—on recommendation of the Cabinet to bring the budget.

Some of the major announcements are pointed below

      1.Budget allocated to Health Care

  • Covid-19 vaccines: Rs 26.75 billion
  •  Covid-19 control and treatment: Rs 37.53 billion
  • Monthly allowance of female community health volunteers: Rs 12,000
  • The total budget of the Ministry of Health and Population: Rs 122.77 billion
  1. Budget allocated for Education
  • The Ministry of Education has received Rs 180.04 billion.
  • Monthly salary of early childhood development teacher: Rs 15,000.
  1. Social Security Allowance
  • Senior citizen allowance: Rs 4,000/month
  • 33% rise on all kinds of social security allowances
  1. Govt staff salary
  • Monthly salary up by Rs 2,000 for everyone
  1. Covid-19 relief
  • Income tax waiver: From 50 to 90%
  • Income tax waiver: For startups for the next five years
  • Refinancing: Rs 13 billion
  • 100% waiver for electricity consumers consuming only 20 units per month during the lockdown/prohibitory period
  • 100% waiver on the drinking water bill for consumers consuming only 20,000 litres per month during the lockdown/prohibitory period
  • Licence and renewal fee waiver for sectors such as film, handicraft, aviation, media, advertising, health club, beauty parlour

       6.Subsidise loan 

  • Up to Rs 2.5 million in loan at up to 5% interest rate with academic credentials of the level above bachelors as collateral
  • Up to Rs 2.5 million in loan at a 1% interest rate for startups
  • Rs 80,000 loan for students to buy a laptop
  1. Budget for Infrastructure Development 
  • East-West Highway expansion: Rs 15.34 billion
  • Railway development: Rs 10.03 billion
  • Kathmandu-Terai fast track: Rs 8.15 billion
  • Postal Highway: Rs 6.39 billion
  • Airport construction and repair: Rs 20.31 billion
  • Water supply: Rs 43.54 billion
  • Madan Bhandari Highway: Rs 3.20 billion

      8.Budget for other major projects and announcements 

  • The central park, from Narayanhiti to Tripureshwar in Kathmandu (Greater Tundikhel)
  • Allocation for the construction of temples at Ayodhyapur, Chitwan
  • Priority to electric vehicles: Renewal and road tax waiver for next five years, another plan to replace fossil-fuel vehicles in the next 10 years
  • Nepal Police and Armed Police Force personnel’s allowance up by 15%

Source: Onlinekhabar

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