Budget 2007-08: Highlights

GDP growth at five per cent.

• Inflation at five per cent.

• Total expenditure Rs 168.99 billion

• Rs 98.17 billion recurrent expenditure

• Rs 55.26 billion capital expenditure

• Rs 15.56 billion repayment of loans

• Rs 93.74 billion general administration

• Rs 75.25 billion development programmes

• Rs 99.60 billion revenue

• Rs 27.46 billion foreign grant

• Rs 17.36 billion foreign loan

• Total of Rs 44.82 billion foreign aid

• Deficit of Rs 24.56 billion

• Crops production decline by 2.5 per cent

• Consumer price rise at 6.6 per cent

• Individual tax-break Rs 115,000 and Rs 140,000 for couple

• Rs 9.56 billion for police forces

• VDC block grant of Rs 1 million continued

• Rs 13.8 billion has been allocated for the Ministry of Local Development.

• Rs 5.82 billion for agriculture sector, up by 47.3 per cent.

• Coffee plantation will be expanded in the Western hilly districts. Onion cultivation

in the additional 2400 hectares of Saptari, Siraha, Bara, Sarlahi, Dhanusha, and Rupandehi.

• ‘One Village One Product’ scheme farming of trout fish as well as production of Lapsi, Sweet Orange (Junar), and Bel will be continued in the coming fiscal year.

• Emphasis on orange production in mid-hill districts.

• Fish farming will be implemented as a campaign.

• A capital subsidy equivalent to 25 per cent of the total cost of the machinery equipments or an interest subsidy equivalent to 80 per cent of the interests for tea estates to be paid for the loan borrowed will be made available for five years in Ilam and Jhapa of the Eastern

Development Region

• Interest subsidy will be continued to tea, cardamom, and coffee farming

• Existing limit of Rs 10,000 with interest subsidy for the agriculture credit has been increased to Rs 15,000

• Subsidy on transportation of agriculture inputs and chemical fertilizer in 26 districts.

• Sugarcane and Sugar Board will be established with the representation from among sugarcane producers and sugar factory owners.

• Unused public land for landless people on the long-term lease to utilize it on commercial and cooperatives farming.

• Agro-markets infrastructure will be developed in Dhading, Chitwan, Bara, Sindhuli, Sunsari, Rautahat, Sarlahi, Solukhumbu, Siraha and Mahottari

• Gene Bank will be established for the long term protection of biodiversity.

• A mid term evaluation of Agriculture Perspective Plan implementation

will be carried out

• Rs 3.99 billion has been allocated for the expansion of irrigation facilities.

• Sikata Irrigation Project will be continued, and construction of the main cannel

will also start.

• Implementation of the Irrigation and Water Resources Management Project will start in various districts of the Western

• Additional 4,000 shallow tube-wells will be constructed in 20 Tarai districts.

• Subsidy in small irrigation projects for farmers’ cooperatives up to Rs 300,000, and for farmers users groups up to Rs 100,000.

• 706-km earthen road including the agricultural and local level roads, and 580-km gravel road will be constructed.

• Upgrading and regular maintenance of 405 km, and 3700-km road respectively will be carried out. Rs 3.35 billion for this purpose.

• 3250 KW small scale and micro hydropower projects to be built. In addition to this, 20,000 domestic solar electricity system, and 25,000 small capacity solar lamps will be distributed.

• Through alternate energy, 32,000 biogas plants will be constructed in the potential areas. In addition to this, 500 solar dryer cooker, 1255 improved water mills, and 50,000 improved ovens will be installed.

• With the contribution of forest entrepreneurs, a separate ‘Forest Development Fund’ will be established. From the coming fiscal year, the forest entrepreneurs will contribute additional Rs 5 per cubic feet to while purchasing the timber, and a corresponding amount will be deposited in the Fund from government’s part as well. The deposited amount in the Fund will be spent in tree plantation and forest preservation. The Ministry of Forestry and Soil Conservation will prepare a Fund manual by mid -September 2007.

• Allocated Rs 9.34 billion to develop road connectivity throughout the country to increase opportunities of economic gains, and subsequently, to improve the livelihood of the people

• Under the Terai Road Development Programme, construction work of 591-km road, including the Hulaki and feeder road in Jhapa, Morang, Saptari, Siraha, Dhanusha, Mahottari, Sarlahi, Bara, Rupandehi, Kapilbastu, Banke, Bardiya, and Kailali will be started

• Jajarkot will have road access soon and the district headquarters of Sankhuwasabha, Bhojpur, Khotang, Solukhumbu and Mustang will have roads