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):

 

HIGHLIGHTS

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:

 

Expenditures (In Billion)

 

Particulars

Fiscal Year

2074/75

2073/74

Current expenditure

803.53

617.16

Capital Expenditure

335.17

311.94

Budget for Financial Management

140.29

119.81

Budget Allocated

1278.99

1048.92


 

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.

 

SOURCES FOR EXPENDITURES:

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

(In Billion)

 

Sources

Fiscal Year

2074/75

2073/74

Revenue

730.05

565.89

Repayment of Debt Principal

15

10

Foreign Grant

72.17

110.89

Foreign Loan

214.04

195.72

Internal Loan

145

111

Cash Reserve

102.73

55.42

TOTAL

1278.99

1048.92

 

 

 

PROVISION

Provisions

Fiscal Years 2074/75

Fiscal Years 2073/74

 

Post-quake

Reconstruction

 

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

 

 

 

Communication

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

 

Information Bank to be developed

 

 

Electricity

 

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

 

 

 

 

 

 

Hydro-Power

50 Crores allocated for Upper Tamakoshi Hydro Power

Projects

 

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

 

 

 

 

Transportation

 

 

Rs 10 Arab 14 Crores allocated for Kathmandu-Terai Fast

Track

 

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

Construction

 

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.

 

 

 

 

 

 

 

 

Agriculture

 

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

Loan

 

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

 

 

 

 

 

Forest

 

 

 

 

 

 

 

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

Reform

 

 

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

Company

 

Nepal to be a member of International Agency for Regulating

Securities

 

 

 

 

Tourism

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.

 

 

 

 

 

 

 

 

 

 

 

Tax

 

 

 

 

 

 

 

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.

 

 

Education

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.

 

 

 

 

 

 

Health

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.

 

 

 

 

Industry

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

 

 

Sport

 

 

Rs 2 Arab 24 crores for Youth & Sport Programs

 

 

Rs 200 million allocated for the 7th National Sport.

 

TAX AMENDMENTS

 

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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