KATHMANDU, MAY 29
In a significant parliamentary session on Monday, Finance Minister Dr. Prakash Sharan Mahat unveiled Nepal's budget for the fiscal year 2080-81. The budget, focused on the prosperity of the country and poverty eradication, addresses various key areas while emphasizing sustainability and inclusivity.
Efforts to reduce the gap between the rich and the poor were at the forefront of the budget's priorities, as the government aims to create a more equitable society. To streamline operations and enhance efficiency, 20 government institutes will be abandoned, and similar government bodies will be merged.
In a progressive move towards digitalization, e-Bidding will be implemented across all government offices, ensuring transparency and efficiency in public procurement processes. Additionally, scrapped government vehicles will be auctioned within six months, while the acquisition of new government vehicles, furniture, and buildings will be halted. Instead, government employees using government vehicles will receive cash allowances rather than fuel facilities.
The budget also introduces measures to encourage sustainable development. The cultivation of cannabis for medical purposes will be explored, and the promotion of briquette industries will reduce dependency on coal. Furthermore, the use of cement for government roads will be promoted to reduce bitumen imports.
To stimulate economic growth and attract foreign investment, an Infrastructure Fund will be established with the participation of foreign investors. Science, technology, innovation, and research will receive a boost with the allocation of 1% of the total budget to the respective fund.
In a bid to support farmers, the budget includes the announcement of awards and incentives to encourage agricultural development. Moreover, the entry barrier for establishing a company has been significantly lowered, with companies now being able to register with just Rs. 100 in issued paid-up capital, and no fees for registration or capital increment.
The budget also addresses social and environmental concerns. Efforts will be made to regulate real estate land prices through scientific evaluation, and approvals for Environmental Impact Analysis (EIA) proposals will be expedited. Landless individuals will receive Lalpurja (land certificates), while measures will be taken to integrate the Napi and Malpot offices gradually.
Recognizing the importance of tourism, the government has declared the years 2023-2033 as the Tourism Decade, with a focus on promoting Nepal as a prime tourist destination. Additionally, legislation will be enacted to facilitate the sale of Nepali goods and services through e-commerce platforms.
Environmental sustainability remains a key priority, with provisions to discourage the use of plastic bags and junk food in government schools. Initiatives such as operating a Milk Bank for newborn babies and implementing the "Now Life at Home" policy to prevent youth migration abroad demonstrate the government's commitment to social welfare.
The budget also allocates resources for the development of sports facilities, including the construction of an international standard cricket ground in Kritipur and the establishment of the Girija Prasad Koirala Cricket Stadium in Biratnagar.
Moreover, the government aims to improve the country's credit rating, construct the Federal Parliament house, and tackle unauthorized settlements along the banks of the Bagmati and Bishnumati rivers. In support of sustainable transportation, charging points for electric vehicles will be expanded.
Other notable measures include the continuation of the old age allowance, ensuring accessibility to electricity for the entire population within two years, and restructuring the Digital Nepal Framework to enhance connectivity and digital services.
Furthermore, Non-Residential Nepalis (NRNs) will be permitted to invest in selected sectors of Nepal's share market, contributing to the country's economic growth. The divestiture strategy for government-owned companies like NTC will be explored to encourage private sector participation.
These budgetary measures aim to foster inclusive growth, promote sustainability, and address the pressing challenges faced by Nepal. With a comprehensive approach, the government is determined to steer the nation towards a prosperous future while ensuring social welfare and environmental stewardship.
The constitutional requirement obliges the government to reveal the budget on Jestha 15 each year.
Earlier, on Jestha 05, President Ram Chandra Paudel, the incumbent at the time, had presented the ruling coalition government's policies and programs for the upcoming fiscal year.
Typically, the government formulates the budget based on its outlined policies and programs, serving as a blueprint for its planned course of action.
