Highlights of Budget 2076-77

Budget 2076-77 is an expansionary budget, which was presented by Finance Minister Dr. Yubraj Khatiwoda on 15th Jestha 2076. This budget aims to achieve an economic growth rate of 8.5%, inflation target at 6%, and employment generation for 5 lakhs Nepalese by the end of the FY 2076-77.

Objectives, and Policies and Programs

1. The major objectives of Budget 2076-77 are

• Uplift of living standard,


• Economic growth backed by social justice, and


• Economic, physical, and social infrastructure development with an aim to upgrade to a middle-income country by 2030, and to build the foundation for the prosperous socialism-oriented economy.

2. Major Policies, Programs, and Procedures to achieve the objectives are

• Eradication of absolute poverty, and rapid uplift of living standard of marginalized sectors, groups, and community with prior focus on social security,


• Enhancement of productive capacity, domestic capital formation through a transformation of social, local, and cooperative sectors,


• Quality education, health facilities, drinking water; economic infrastructure development for agriculture, industry, tourism, and the like,


• Rule of law, the effectiveness of public services, good governance backed by accountability and active public participation.

Revenue Source Identification

• Government revenue: RS. 9 Kharba 81 Arba 13 Crores 83 Lakhs


• Foreign Grants: RS. 57 Arba 99 Crores 55 Lakhs


• Foreign borrowing: RS. 2 Kharba 98 Arba 83 Crores 33 Lakhs


• Domestic borrowings: RS. 1 Kharba 95 Arba

Expenditure Allocation

• Budget 2076-77 stands at RS. 15 Kharba 32 Arba 96 Crores 71 Lakhs, which is 28% higher than the Budget 2075-76.


• Current Expenditure amounted to RS. 9 Kharba 57 Arba 10 Crores 14 Lakhs (62.4%)


• Capital Expenditure amounted to RS. 4 Kharba 8 Arba 59 Lakhs (26.6%).


• Financial Expenditure amounted to RS. 1 Kharba 67 Arba 85 Crores 98 Lakhs (11%).

Budgetary Projections

• The economic growth rate projected at 8.5%.


• Employment prospects to 5 Lakhs citizens.


• Inflation target at 6%.

Revenue

• Income tax exemption range increased to Rs. 4 Lakhs for Individual and Rs. 4.5 Lakhs for a couple.


• Tax exemption during the process of merger of Banking and Financial Institutions.


• VAT exemption in accident and health insurance.


• Capital Gain Tax (CGT) in the share market is decreased to 5%


• CGT in Real Estate is decreased to 5% (sub-metropolitan) and 10% in (metropolitan)


• Government staff salary for gazetted officers and non-gazetted officer to be increased by 18% and 20% respectively and all other incentives and facilities are kept unchanged

Central, State, and Local Level

• Equalization grant to provinces amounting to Rs. 55 Arba 30 Crores and Rs. 89 Arba 95 Crores to local bodies.


• Conditional grant to provinces amounting to Rs. 44 Arba 55 Crores, and RS. 1 Kharba 23 Arba 87 Crores.


• Expected revenue sharing of Rs. 1 Kharba 30 Arba 89 Crores in Provinces and Local levels.


• Equitable grant for provinces and local level amounting to Rs. 10 Arba.

Major Policies for the Fiscal Year 2076-77

• 1 Kharba 63 Arba 76 Crores for Education, Science, and Technology.
  
  
  
  • Free education up to secondary level; establishment of an informal school for students unable to join regular schooling
  
  
  • Announcement of ‘Literate Nepal’ and ‘Literacy Campaign’. 70 districts to be fully literate by the end of fiscal year 2076/77.
  
  
  • Establishment of President Educational Improvement Fund to uplift the quality of public schools. A decade lasting from 2076 to 2085 has been declared as the decade of ‘Improving Quality of Education in Public School’.
  
  
  • 8 Arba 53 Crores for Construction of 300 additional school building.
  
  
  • 3 Arba 19 Crores for School Level Scholarship.
  
  
  • 1 Arba 50 Crores grant for training and development of volunteering-teachers.
  
  
  • 2 Arba 21 Crores for quality improvement of study materials such as books in order to increase the effectiveness of education.
  
  
  • 5 Arba 95 Crores for a day-lunch facility to schooling children in Public Schools.
  
  
  • 1 Arba 10 Crores for the establishment of Madan Bhandari Science and Technology University.
  
  
  
  


• The total budget for the Health Sector amounted to Rs. 68 Arba 78 Crores.
  
  
  
  • 2 Arba 20 Crores grant for the cure of 8 severe diseases to destitute citizens.
  
  
  • 1 Arba 82 Crores for the cure of Tuberculosis, AIDS, and other sexually transmitted diseases.
  
  
  • 5 Arba 57 Crores for the Hospital under construction.
  
  
  
  

• The total budget allocated for Drinking water and Sanitation amounted to Rs. 43 Arba 46 Crores.
  
  
  
  • 7 Arba 39 Crores for Melamchi Drinking Water Project.
  
  
  
  


• Budget allocation for Labour and Employment stands at Rs. 7 Arba 14 Crores.


• 5 Arba 1 Crores for Prime Minister Employment Program.


• Total budget allocation for Social Security amounted to RS. 64 Arba 50 Crores.
  
  
  
  • The Elderly Allowance has been increased from Rs. 2000 to Rs. 3000.
  
  
  • Allowances to disabled, differently abled, single woman, and endangered indigenous groups have been increased by RS. 1000.
  
  
  • Budget allocation for Women, Children, and Senior Citizen amounted to Rs. 78 Crores.
  
  
  
  


• Total budget allocation for development of Agriculture and Animal farming amounted to Rs. 34 Arba 80 Crores.
  
  
  
  • 8 Arba 10 Crores for Prime Minister Agriculture Modernization Project.
  
  
  
  


• Budget allocation in the Irrigation Sector stands at Rs. 23 Arba 63 Crores.


• 5 Arba 73 Crores budget allocation for construction of dams in rivers such as Koshi, Narayani, Karnali, and so on.


• 15 Arba 49 Crores for Forestry and Environment.


• Budget for Land management and Cooperative sectors amounted to RS. 7 Arba 69 Crores.


• Budget allocation for Tourism stands at Rs. 22 Arba 68 Crores.


• Total budget allocation for Industry, Commerce, and Supplies stands at 11 Arba 74 Crores.


• Total Budget allocation for Energy Sector stands at RS. 83 Arba 49 Crores.


• Budget allocation for Road, Rail, and Water Transportation infrastructure development stands at Rs. 1 Kharba 63 Arba 52 Crores.
  
  
  
  • Budget for transportation management stands at RS. 1 Arba 53 Crores.
  
  
  
  


• Budget for accommodation, building, and urban development stands at Rs. 40 Arba 73 Crores.


• Budget for Earthquake Reconstruction stands at Rs. 1 Kharba 41 Arba.


• Budget allocation for Local Infrastructure and Airway Infrastructure amounted to Rs. 37 Arba 80 Crores.


• Budget allocation for Youth and Sports stands at Rs. 3 Arba 99 Crores.


• “Open Bank Account” Campaign and ambitious aim to have a bank account of every Nepali Youth.


• Encouragement of mobile, internet, and branchless banking so that rural area can have easy access to banking facilities.


• Priority for the use of cards and the internet to make and receive payments.

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