Finance Minister Bishnu Paudel on Saturday announced a budget of Rs 1.647 trillion for the upcoming fiscal year 2021/22.

Minister Paudel in his briefing today at the Singha Durbar, announced that of the aforementioned amount 41.2 percent has been allocated for recurrent expenditure while 22.7 percent, 12.6 percent and 23.5 percent have been designated for capital expenditure, debt financing and transfer to local to the provinces and local bodies, respectively.

The new budget that aims to attain an economic growth of 6.5 percent in the upcoming fiscal year plans to collect Rs 1.024 trillion through revenues and Rs 63.77 billion through foreign grant while the remaining amount will be covered through foreign loans and domestic borrowing.

It has been learnt that the government has increased all existing security allowances by 33 percent in line with which the elderly (70+) citizens will now receive Rs 4,000 in allowance per month.

Speaking in the briefing, Minister Paudel said that Rs 10.03 billion has been allocated for railways which includes expenditure on study for metro in the Kathmandu valley.

To tackle the looming COVID-19 pandemic, government has allocated Rs 26.75 billion for procurement of vaccines while Rs 4 billion will be spent on purchasing COVID-19 related medical supplies.

Similarly, in an attempt to revive the tourism sector the government has decided to allow 10 days of paid leave to civil servants.

The government in a bid to encourage the use of electronic vehicles has decided to waive renewal and road tax of EVs for next five years while another plan to replace fossil-fuel vehicles in the next 10 years has also been stipulated.