Major Budget Highlights 2017/18 (2074/75) Nepal (Read and Download as PDF)

​Major Budget Highlights 2017/18 (2074/75) Nepal

Ministry of Finance has Released the Budget on May 29, 2017. MOF has announced the Budget of the 1278 Billion. Here we have presented the key Budget Highlights.  


NEPAL BUDGET 2074-75 (2017-18):



Budget Allocated: NRs. 12,78,99,48,55,000/-

Current expenditure: NRs. 8,03,53,14,54,000/- (62.8%) Capital Expenditure: NRs. 3,35,17,59,70,000/- (26.2%)

Budget for Financial Management: NRs. 1,40,28,74,31,000/- (11.0%) Economic Growth Rate Expected: 6.9%

Inflation Rate Expected: Below 6%



COMPARISON of the Figures with the PREVIOUS FISCAL YEARS 2073/74




Expenditures (In Billion)



Fiscal Year



Current expenditure



Capital Expenditure



Budget for Financial Management



Budget Allocated




If you want to download the Major Budget Highlights 2074/75 (2017/18). Below You can scroll down to the button and download the pdf file by clicking the link also.



The sources of the funds required to meet the budgeted expenditures are as under:

(In Billion)



Fiscal Year






Repayment of Debt Principal



Foreign Grant



Foreign Loan



Internal Loan



Cash Reserve











Fiscal Years 2074/75

Fiscal Years 2073/74





Rs. 146.18 Billion budget allocated for expenditure via

National Reconstruction Authority

Rs 140.66 billion is allocated for reconstruction.

Interest free loan of Rs 300,000 for each households

affected by the earthquake.








Commerce, Trade & Supply

Exportable Items to be promoted as per Commercial Policy,

2072 & Nepal Unified Trade Strategy 2073


Grab the opportunity of One Belt One Road Initiative


Export Incentives to be effectively used


Birgunj Unified Security Post to be operated & Under construction security posts of Biratnagar, Bhairawa, & Nepalgunj


Rs. 10 Arab 96 Crores allocated





Rs. 4 Arab 98 Crores allocated for Information & Technology,


Information Bank to be developed





Plans  to  end  load  shedding  within  2  years;  self

reliant within 3 years and start export of electricity within 10 years.



Plans to add more electricity to the national grid —

Chamelia and Kulekhani within 1 year; Upper Tamakoshi and Trishuli 3A within 2 years; and Rasuwagadi within 3 years.


Plans to produce 6,000 MW electricity from river flow and 4,000 MW from water reservoir within 10 years.


Public private share program to invest in hydro- projects with 51% government and 49% general public.


1,000 MW Budhigandaki project to start; Rs 5.33 allocated; More than 7 billion rupees to be collected from taxing Rs 5 per litre of petrol, diesel and aviation fuel which will go towards the project.










Road Construction

Rs. 89 Arab 50 Crores allocated for roads constructed besides

local authority


Rs. 5 Arab 54 Crores for Thankot Naubise Tunnel way initiation


Rs. 3 Arab for Roads at Terai Madhes to link up with the East

West Highway


Rs. 3 Arab 15 Crores for Dharan-Gaighat-Sindhuli-Hetauda road


Rs. 7 Arab 11 Crores for Narayanghat- Butwal road to extend to four lanes


Rs 10 billion allocated for Budhune-Hetauda section construction part of the Kathmandu-Nijgad duel carriage Highway.


Rs 4.20 billion allocated for Postal Highway; 518 km dedicated double lane within 3 years; 1152 km second phase to start coming fiscal year.


Pushpalal Mid-hilly Highway: 5 year completion plan; Rs 2.88 billion allocated for express highway with tunnel; multi-year contract to be handed.


Rs 3.02 billion allocated for 318km Dharan- Chautara-Gaighat-Katari-Sindhuli bazaar-Hetauda road; to be completed within 3 years.


Rs. 2 Arab 56 Crores for enhancement of Munglin-

Narayanghat road


Rs. 2 Arab 90 Crores for extension to 6 lanes at Rani-Itahari- Dharan, Jatahi-Janakpur, Birgunj-Pathlaiya, Belahiya-Butwal

& Mohana-Attariya roads

Terai  Madhes  East-West  Highway:  Rs  2  billion

allocated   for   4   lane   modern   road   connecting southern borders via district head quarters.


Prithivi  Highway:  Rs  1.86  billion  allocated  for

Nagdhunga Tunnel








50 Crores allocated for Upper Tamakoshi Hydro Power



10 Arab 17 crores allocated for “Muaabja” distribution &

operation expenses


“17000MW in 7 years” campaign


Rs. 62 Arab 47 Crores Allocated for Energy programs






Labor Management

Rs. 1 Arab 14 Crore for Labor Management


Compulsory Bank Account to be obtained before going for foreign employment & Remittance should flow into the country to same account


Remittance encouraged in Hydro Projects investment








Rs 10 Arab 14 Crores allocated for Kathmandu-Terai Fast



Rs. 4 Arab 27 Crores for 518 Km road construction of Hulaki

Raj Marga

Introduction of high security embossed number plate

and vehicle fitness test.


Smart card driving license and registration


Mandatory digital taxi meters



Rs 2 Arab 3 Crores for North-South Lok Marga


Rs. 30 Crores allocated for Humla District HQ & Dolpa

District HQ


Rs. 4 Arab 3 Crores allocated for Road Topped & Bridge



Rs. 4 Arab 2 Crores for East-West Railway, Metro Rail, Mono

Rail Projects














Urban Development





Rs 30 Arab 48 Crores allocated for urban infrastructure development


Unified Residential Areas to be developed


All Municipalities within Kathmandu Valley to be coordinated as Satellite City


One Mega City to be developed in each Province


Rs 11 Arab 1 Crore allocated for developing Headquarters of

20 districts of Terai – Madhesh


Rs. 2 Arab 44 Crores for Janata Aawash Program

Rs 9 billion allocated for city development (road,

sewage system, drinking water, renewable energy, bus park, fun park, education, health). 500 million allocated for each cities which include Mahendranagar, Dhangadi, Gulariya, Nepalgunj, Taulihawa,  Siddarthanagar,  Parasi,  Birgunj, Kalaiya, Gaur, Mahangawa, Jaleshwore, Janakpurdham,  Siraha,  Rajbiraj,  Biratnagar, Inaruwa and Bhadrapur.


Rs 1.72 billion allocated for building homes for backward community (Dalit, Muslim, Chepang, Rautay, Gandharba, Badi, Bankariya, Surel and Thami). 20,000 homes to be built.


Bhaktapur to be developed as cultural city.


Rs 710 million allocated to develop 5 of the poorest

VDCs in Bajura district.


Building code


Denial  of  basic  services  such  as  drinking  water,

electricity, sewage, telephone to those not following the building code.











Study to initiate the Pension fund based on the contributions to classify the farmers according to Area & Ownership of land,

Inclusion of Farmers in Social Security programs, Encouragement to Youths in Agriculture,

Promotion of Agriculture Insurance


Subsidy of 5% on Interest payable on Agriculture & Poultry



Rs 30 Arab 40 Crores allocated

Rs  5.78  billion  allocated  for  Prime  Minister’s

agricultural modernization program.


Agriculture sector to be divided into pocket area, zone and super zone


Agricultural aid of up to 50%-85% of capital for various projects.


Rs 5.47 billion allocated for bio/chemical fertilizer industry aid


Rs 8.46 billion allocated for animal production and self reliance program














Rs. 1 Arab 92 Crores for President Chure Protection Program

Rs  1.88  billion  allocated  for  President’s  Chure

preservation program which spans 29 districts.


Rs   630   million   allocated   for   national   forest management.


Rs  380  million  allocated  for  community  forest management.


Increase in wildlife protection budget.






Irrigation and river management




Rs. 5 Arab 16 Crores allocated for 4 irrigation projects, Rani Jamara, Bheri Babai Diversion, Sikta Irrigation, Babai Irrigation (West)


Rs 27 Arab 41 Crores for Irrigation programs

Rs 2.30 billion allocated for Terai Madhes Irrigation

(11 district Terai-Madhes irrigation program).


Rs 5.35 billion for ongoing irrigation projects at Sitta, Ranijamura, Kulariya, Babai, Bheri Babai diversion, Mahakali 3rd and Bagmati.


Rs 3.98 billion allocated for 12 river management.


Land & Forest




Rs. 15 Arab 34 Crores Allocated  for Forest Conservtaion & Promotion programs

Specific land designated for specific use. Unused

agricultural  land  to  incur  fine  of  up  to  25%  of possible crop production.


Cooperative Promotion & Regulation

Cooperative shall involve in Public-Cooperative Partnership

program to reflect“One Cooperative Core Identity” principle. New Cooperative Act to be issued




Reinsurance / Securities

Reinsurance to be done compulsorily with Nepal Reinsurance



Nepal to be a member of International Agency for Regulating







Rs. 13 Arab 72 Crores allocated for 3 under construction

International Airport Projects, Nijgadh, Gautam Buddha

Regional, Pokhara Regional International Airports


1 Arab 16 Crores for Pashupati Area & Lumbini Area Master plan formulation & implementation



Year 2073 BS to be declared domestic tourism year; preparation to declare year 2018 AD as Nepal Visit Year.


Janakpur Area Development Program to be Continued

Plan  to  bring  Gautam  Buddha  Int’l  Airport  in

operation by 2074 BS Magh month. Rs 7.22 billion budget allocated.


Rs 5 billion allocated for Pokhara Regional International Airport construction. Rs 1.5 billion allocated for proposed Nijgadh Int’l Airport.




















Revenue collection through e-payment mode.


Separate Tax Identification No shall be generated as to include both Income Tax & Custom Duty


Tax submission through Banking system

General tax remain the same. Individual tax exemption  limit  rises  from  Rs  250,000  to  Rs

350,000. Tax exemption limit for couples also up from Rs 300,000 to Rs 400,000.


Tax rise in beer, spirit and cigarette.


Self audit allowed for businesses with revenue of up to Rs 10 million per year.


Customs duty on import of machinery and equipment needed for Agriculture, Irrigation and Livestock reduced to 1%. Import tax also reduced for electric public and private transport vehicle; vehicles used for transport of milk, meat and fish transport, Gas bullet.


Customs duty on import of certain medicines reduced.



Benefit scheme


Benefit for elderly, disabled, etc doubled.


Journalists  to  get  50%  discount  at  government hospitals.




Rs. 66 Arab 12 Crores for Education related program


Youth with Bachelor Cleared in Technical Disciplines & Masters in other disciplines shall be volunteered in Local level Technical & Social issues



Rs 26.50 billion allocated for School development. Loan facility with academic certificate as collateral.



Drinking water


Rs. 6 Arab 57 Crores for Melamchi Project IInd phase


Rs. 22 Arab 70 Crores for drinking water & sanitation programs

Plan  to  start  distributing  drinking  water  from

Melamchi by 2074 BS Asoj month. Budget of Rs

5.98 billion allocated.


Rs 8.03 billion allocated for other drinking water projects around the country.








Rs. 31 Arab 78 Crores allocated for Health related programs


National Health Insurance policy for all citizens


Dialysis totally free of cost


All government hospitals should have their own pharmaceuticals


MD & MS passed under Government scholarships must work in remote areas for specified period



Rs 2.50 billion allocated to implement National Health Insurance. Rs 1 billion allocated to provide free treatment (8 different illnesses) of impoverished citizens.


Treatment of Heart, Kidney and Liver disease; and Cancer to be free for the impoverished at government hospitals. Dialysis facility free until Kidney transplant.






Youth Entrepreneur Program to be continued


Possibility study for Natural gas & Petroleum products


SEZ to be operated


Vagat Sarvajit Dalit Program shall be made more effective



Eco Friendly Industry to be promoted






Rs 2 Arab 24 crores for Youth & Sport Programs



Rs 200 million allocated for the 7th National Sport.




No such rates of tax have been changed by this budget announcement. The previous tax rates have been continued. However, the mechanism of collection of tax shall be systematized & maximum economic activities are aimed to be brought under the tax brackets. E-payment & Banking system shall be deployed for the collection of tax. The Tax administration shall be reformed & evasion shall be deterred.

On Summary Following Are some Major Budget Highlights:

  1. Rs. 500,000 to Martys Family
  2. Rs. 300,000 Interest Free loan to Earthquake Victim
  3. Earthquake Rehabilitaion Budget Rs.140.66 Billion
  4. Budhugandaki Construction Budget Rs. 5.33 Billion
  5. Petrolium  Price Increased by Rs. 5. 
  6. Hulaki Rajmarga 4.2 Billion
  7. Kathmandu-Nijghard Fast Track 10 Billion
  8. Compulsory Digital Meter in Taxi
  9. Kathmandu - Birgunj Railway Survey
  10. Imbost Number Plate in 5 Years for vehicle
  11. Residential Budget 1.72 Billion
  12. Prime Minister Agricultural Fund 5 Billion
  13. Loan on Pledge of the Agricultural Crops
  14. No Electricity, Water and Telephone to the Building Constructed Illegally
  15. 25% Fine to Put the Bare Land
  16. 25 Hrs Electricity to The Major Industrial Zone
  17. School Area Development Budget 26.5 Billion
  18. National Trading, Food Orgn. , Agricultural Equipment Centre, etc. to be merged and National Suppliers is to be Created
  19. Madan Bhandari Technical School in Makwanpur
  20. Health Insurance to all people in 3 years
  21. Loan on Pledge of the Educational Certificate
  22. Melamchi with in 2077
  23. 50% Discount to the News Report in Governmental Hospital
  24. Rs. 2000 Bridabhatta
  25. 4G in Kathmandu
  26. Increase in Rental Allowance to Parliament Member
  27. Nepali Out side Nepal Can Vote in Election
  28. Compulsory Solar in New Construction Building
  29. Zero Balance Bank Accounts to Nepalese
  30. 3.5 Crore to the Parliament Member to Development Work in their area 



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