Dr. Yuvraj Khatiwada is currently presenting the budget for the FY 2077/78.  This year's budget holds a greater importance as it will be the foundation to rebuild the economy post the COVID-19 pandemic. Below are the highlights corresponding to the Fiscal year 2076/77 and Budgeted for the fiscal year 2077/78.

Highlights of the Fiscal 2076/77

Particulars	Amount
Economic Growth	2.5%
Per Capita  Income	$1085
Inflation Rate	6.5%
Foreign Currency Holdings	11.56 Kharba
Import Increase	12.9%
Revenue Collection	74.4%

Announcement/Budgeted for the Fiscal Year 2077/78 (2020/21)

Particulars	Amount
Revenue Collection	8.27 Kharba
Government Expeses	11.73 Kharba
Investment Board Comitted Investment	14.35 Kharba
Apporved Investment of Investment Board	1.55 Kharba

 Health Sector

Particualrs	Amount
Budget of Health Ministry	9.69 Arba
Efficient health system to be established
COVID-19 Treatment Tools	6 Arba
Free health insurance of Health Workers	5 Lakhs
Provincial and Local Level Budget	1.22 Kharba
Mandatory health checkup of individual entering Nepal
Health Related Infrsctructures	12.46 Arba
New hospital establishment	14.27 Arba
40% population of vdc to be insured	7 Arba
National Disease Treatement Centre
Ambulance Service from 1 number
Highway Trauma Centre
Health Professional to be increased
Additional Families to be Provided free health services	4 Lakhs
Corona insurance 50% premium to be paid by government

Electricty Rebate

Industries will be provided 50% rebate in electricity use during lockdown

Unit Consumption	Rebate
Industry during lockdown	50%
Upto 10 units	100%
Upto 150 Units	25%
Upto 250 Units	5%

Labour and Employment:

Particulars	Amount/Budget
Labours to be trained (1 Lakh to be employed	1 Arba
Loan to entreprenuer (75,000) concession based interest at	2%
PMEP program will provide employment to 2 lakh people	11.6 Arba
Farmer Loan to create 40 thousand job opportunity
"Building our village on our own" program to be encouraged
Employment in agriculture sector	1.5 lakh

Social Security

 

Particulars	Amount/Budget
Allocated for Social Security	67.5 Arba
Security Allowance to be continued as it is
Senor Citizen insurance	3 Lakh
Infrastructyre will be made disabled friendly
"Building our village on our own" program to be encouraged
White stick and braile to be provided freely to blind

Agriculture Sector

"One agriculture, one fauna" program management for which 50 crore budget has been allocated

Particulars	Amount/Budget
One agriculture, one fauna	50 Crore
Self Reliant in dairy and meat products
Prime Minister Agriculture modernization program will be strengthened	3.22 Arba
Organic farming to be branded and commercialized
Chhobar, kathmandu will install hub market
Community agriculture will be provided allowance
Fertilizers Distribution	11 arba
internship and job opportunities for Students in agriculture college
Farmers can now pay crop instrument after the production
Sugarcane farmer	95 Crore
Barren land to be used in fruits production
Cattle quarantine facility to be imposed in the major check points

Irrigation

Mahakali irrigation will be National pride project for which 10.25 arba is allocated

Migrants, Agriculture and Land Management

Migrants can do self agriculture via "Land Bank".

Migrants can use land in lease and hence, will get consensation in agricultural inputs

Particulars	Amount/Budget
Land Investment Bank	50 Crore
River Monitoring	6.2 Arba
Sunkoshi Marine Diversion	2.46 Arba
Land Reform	1.73 Arba

Co-operative:

 Co-operatives will be encouraged to go cashless and be encouraged to merged

Sana Kisan Bikas Bank will be lent Rs 3.60 arba in order to provide assistance to several cooperatives

Forestry:

1. Tree plantation to be promoted
2. Chure Preservation Rs 1.55 arba
3. High value herbs production to be provided
4.  Carbondioxide trade from forests will be encouraged

Tourism Sector

1. Tourism Infrastructures budget Rs 1.26 arba
2. "One province, one tourism spot" program to be encouraged
3. Secondary level will now include tourism related subject
4. Tax rebate, interest subsidy to be provided to airlines, travels agency, trekking agency
5. Government employees and related insitutions will be encouraged in internal tourism

Industry Sector

1. Government employees and national organization employees' uniforms will be produced through national fabric
2. Local products will be encourages
3. One industrial gram to be established in each province
4. Public Private Partnership (PPP) to be promoted to establish new industries 
5. 130 industrial gram to be established, for which 2.64 arba has been allocated

Commerce and Supplies

1. Tea, coffee, herbal products will be encouraged for branding and export
2. Export to be promoted and given subsidy exportable products
3. Handicraft to be promoted for which SAARC hub to be established
4. 3.10 tonnes of capacity warehouse to be established in local and provincial level
5. Sufficient storage to be kept for most essential FMCGs
6.  Along with pipe line, storage capacity will be upgraded through Nepal Oil Corporation

Finance Sectors

1. Banking and finance institutes will be encouraged to be merged and acquisition
2. Digitalization and cashless economy will be encouraged
3. Mobile and internet banking in remote areas will be encouraged
4. Insurance will be affordable for general public
5. Industries and public transportation that have been affected will get extension in insurance
6. Debenture to be promoted and be listed in secondary market and made tradeable
7. Capital market scope to be enhanced by introducing debt management and stock dealers functioning will be encouraged
8. Commodity market will be brought in functioning
9. National payment gateway to be implemented
10. Hedging for foreign currency will be encouraged
11. NEPSE will be made completely digitized

Education sector

Particulars	Amount/Budget
Educational Sector	17.43 Arba
Free Education secondary level
Literate Nepal
Virtual Education to eb encouraged, online and television education to be provided
President Education Sector Improvement Fund	6 Arba
Scholarships	2.7 Arba
School To be Establised	800
Free books and stationary	2.76 arba
University Donation forum	17.43 Arba
Free lunch in Government Schools (28 lakhs)	7.92 Arba
Volunteer Teachers (6000)	2.23 Arba
Higher Education to be made competent
Secondary education to be made technical based

Science and Technology

Infrastructures development and education initiation in Madan Bhadari Science and Technology Institute has been allocated 1 arba

 Culture:

1. Meditation hall of 5000 people capacity to be established in Lumbini
2. Janaki Mandir area to be preserved

Youth and Sports (2.63 Arba)

1. Youth entrepreneurship to be promoted
2. Skill based trainings to be provided to youth
3. Discipline to be encouraged via sports activities among youths

Women and Child (1.14 Arba)

1. President Women Upliftment Program to be encouraged
2. Pregnant woman to be provided access to health service through helicopter
3. Women Enterprenurship to be established
4.  Child Labour to be abolished

Drinking Water (43.1 Arba)

1. Melamchi to be completed within this year and Melamchi water supply can be initiated from the upcoming year year
2. 1 arba  allocated for Kathmandu Upatyaka Khanepani Limited (KUKL) for upgradation as professional institution.
3. "Waterof Nepal and Investment of Citizen" program to be promoted
4. Sewage Management:

Sewage management

1. Rs 5.89 arba allocated for sewage management

Electricity Sector

Particulars	Amount/Budget
Additional Electricity Production	1300MW
City Development Ministry	37.8 Arba
Infrasctructure Development (30 cities in each province)	1.8 Arba
Alternate Electricity Production program	4 Arba
City Infrastructures	1.8 Arba

1. 1300 MW electricity production to be added in fiscal year 2077/78
2. Jhapa to Mahendrangar 400 KV capacity nation wide electricity transmission line to be established
3. Export to be promoted for electricity
4. Use of electricity to be promoted above other power.
5. Sanjen and Rasuwagadhi Hydropower Project to be complted and production to be initiated
6. All households of Nepal will have access to electricity within two years
7. Nepal Electricity Authority Management to be reconstructed
8. After completion in Kathmandy valley, underground electricity wiring to be initiated in Bhaktapur, Lalitpur and Chitwan.
9. Hydropowers holding licenses for longer period will be discouraged by cancelling the licenses
10. Four mini city to be initiated in Kathmandu in PPP model
11. Uranium production possibility research will be initiate

Roads and Highways

Particulars	Amount/Budget
Every province to have at least 2 highway access
East West Highway to be made 4 Lane	12.21 Arba
Hulaki Highway to be completed	7.5 Arba
Pushpalal Highway to complete in 3 Years	3.27 Arba
Madan Bhandari Highway	3.7 Arba
Kathmandu - Nijghad Express Highway in 3 Years
Kahtipath and Suray binaya dhulikhel road expansion	1.2 Arba
Tunnel based road	642 Road
Embosed number plate to be promoted

Railway and Transportation

Particulars	Budget
Railway Transportation	8.66 Arba
Nepal's own ship will be installed to bring imported goods from indian sea ports
Gautam Buddha International Airport to be completed
Tribhuwan International Airport	19.42 Arba

Reconstruction after Earthquake (55 Arba)

All the reconstruction after earthquake to be completed in the coming year and Rs 55 arba has been allocated for the same

Technology and Communication

1. Nepal Television's capacity to be strengthen and will be telecasted in international level
2. Fiber to home and broadband to be accessible nation wide
3. Online media will be encouraged
4. Nepal's own satellite system will be introduced
5. Journalist Insurance will be encouraged
6. Reliable internet connection to be made accessible within two years

Legal Sector

1. Single women will be provided free legal services
2. National Security will be strengthen
3. Regional airbase for Nepali Army will be provided
4. 39 border posts will be established for border security
5. 1 Crore Nepali will have own biometric identification number 
6. Punishment for drug dealer and child trafficking
7. Online complaint system to be implemented within three years

International Relations:

1. International Relations will be established maintaining sovereignty
2. Migrant workers security will be ensured

Others:

1. Front workers during Corona pandemic will be motivated, for which budget has been allocated
2. Rs 1 lakh corona insurance to be provided for free of cost for temporary and permanent government staff
3. Administrative Expenses to be controlled and budget is curtail for the same
4. Accounting for public debt to be made electronically and such debt to be used in capitalised expenses only
5. Travel allowance, engine, furniture, new vehicles purchase will face cut in budget
6. Motivation allowance and lunch allowance will be dismissed

 

Tax Rates and Rebates

Tax rebate for Micro and Cottage Industry

Turnover	Tax Rebate
0-20,00,000	75%
20,00,000-50,00,000	50%
50,00,000-1 Crore	25%

1. Income Tax Rebate for Micro Enterprise extended to 7 years and 10 years if operated by female.
2. VAT to be levied in Micro Enterprise Inusrance is removed
3. Custom duty on import of Machinery and Raw Material imported by Cottage and Micro Enteprise, Agriculture Business, Mask Producing Industry and Agricultural machinery.

Concession Corona Affected Industry

1. Corona affected Hotel, Transport, Travel and Trekking, Aircraft - Income Tax for  Fiscal year 2076/77 20% Rebate
2. VAT return submission period for Tourism Sector and Freight Service made quarterly
3. Custom on Ayurvedic medicne raw material reduced and VAT Exempted on import of raw material by medicine industry, Refund of tax if purchased in local market
4. Telecomunication service fee on 50% of fixed broadband repair expenses exempted
5. 2% service fee reduced to 1% for Radio and Television transmisison operated and own by self

Other Duty and Tax

1. Custom Duty on petrolium, gold and jewellery increased
2. Foreign produces fee of 15% is repealed
3. Custom duty levied on import of furniture
4. Income tax on Special Industry on SEZ for 5 Years 25% Rebate
5. Income tax exempted for Drinking Water and Cleaning Consume committee and Income Tax assessed till fiscal year 2076/77 relieved

Income Tax Rate for Cooperatives

Cooperative on Area	Tax Rate
Rural Municapility Area	0%
Minicipality Area	5%
Sub Metropolitan Area	7%
Metropolitan Area	10%

• No Income Tax levied on retirement payment for the if retirement contribution fund amount is deposited to Social Security Fund
• Arrangement of Payment for tax by electronic medium
• Automatic Tax Clearance System

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