Budget 2078/79: Major Highlights & Announcements

May 30, 2021 | Investopaper

The government has unveiled the budget of Rs. 1,647.57 billion for the coming fiscal 7ear 2078/79 on Saturday. As there is a constitutional provision to present the budget for the coming fiscal year to the parliament on Jestha 15 of each year, this time the government has brought the budget from the ordinance after the dissolution of the parliament.

After President Bidyadevi Bhandari issued three ordinances related to the budget on the recommendation of the Council of Ministers, Finance Minister Bishnu Prasad Poudel unveiled the budget at a special program organized at the Office of the Prime Minister and Council of Ministers.

Out of the total budget, the government has allocated 41.2 percent or Rs 678.61 billion for current expenditure, 22.7 percent or Rs 374.26 billion for capital expenditure and 12.6 percent or Rs. 207.97 billion for financial management.

Similarly, 23.5 percent or Rs. 368.71 billion has been allocated for financial transfer at the state and local level.

As sources for the budget, Rs. 1,024.90 billion will come from revenue and Rs. 63.37 billion from foreign grants, Rs. 309.29 billion will come from foreign debt and Rs. 250 billion from domestic debt.

Finance Minister Poudel informed that Rs. 26.75 billion has been allocated in the budget for the purchase of vaccine against corona.

The budget has increased the grant for federal projects and programs to be implemented at the state and local level.

The budget has allocated Rs. 45.09 billion for the development of agriculture and livestock and Rs. 12 billion for the subsidy of chemical fertilizers in the next two years.

The budget will provide irrigation facilities to an additional 29,400 hectares of arable land next year, complete the tunnel construction work of the Sunkoshi Marine Multipurpose River Diversion Project in four years. The budget has been allocated to connect 5,000 shallow tubewells and 200 deep tubewells to expand irrigation facilities in the and 20,000 hectares cultivable land in 25 districts..

Similarly, the budget has increased the budget amount in the field of social security to Rs. 4,000 as the social security allowance of senior citizens.

The budget has allocated Rs 13 billion for various programs for relief, concession and economic rehabilitation and to provide interest subsidy to those returning from foreign employment by increasing the limit of concessional loan to five percent.

Similarly, the budget has allocated funds to complete the survey and mapping of 15,000 square kilometers from Mechi to Narayani and to complete the survey and mapping of all parts of the country within the next three years.
The budget has allocated Rs 2.77 billion for construction of industrial infrastructure. The commercial production from Dhaiwadi iron mine will be completed next year and petroleum exploration within the next two years said Finance Minister Poudel.

Recommended: Budget 2077/78

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