The new budget seems quite different from the previous two as it has to deal with the ongoing economic crisis that has hit revenue and the nation\u2019s two primary sources of income, foreign remittances and tourism.<\/p>\n

<\/p>\n

1) Prioritizing Health Sector<\/strong><\/h3>\n

The government has given priority to the healthcare sector in the new budget to improve the healthcare system and address Covid-19 and similar crises in the future.<\/p>\n

The new health budget stands at NPR 90.69 billion, up by NPR 20 billion against NPR 68.78 billion of current fiscal.<\/p>\n

\n
• NPR 6 billion – Control of coronavirus infection<\/li>\n
• NPR 500,000 – Free health insurance for doctors and health workers<\/li>\n
• NPR 12.66 billion – Health sector infrastructure<\/li>\n
• NPR 5.10 billion – \u2018One Doctor, One Health Institution Program\u2019<\/li>\n
• NPR 14.72 billion – Construction of 272 more health institutions at the local level<\/li>\n
• NPR 4.22 billion – Treatment of diseases such as tuberculosis and sexually transmitted diseases<\/li>\n<\/ul>\n

  <\/p>\n

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  2) Energy, Irrigation and Water Supply Projects<\/strong><\/h3>\n

  In the budget statement, the government has emphasized the development of new energy, irrigation and water supply projects, and the completion of under-construction projects.<\/p>\n

  In total, the government has allocated NPR 83.49 billion for energy, irrigation and water projects.<\/p>\n

  \n
  • Budhi Gandaki Hydroelectric Project \u2013 NPR 13.57 billion<\/li>\n
  • Water Supply and Sanitation Project \u2013 NPR 43.46 billion<\/li>\n
  • Rani Jamara, Babai and Bheri Babai Irrigation Projects \u2013 NPR 23.63 billion<\/li>\n
  • Sunkoshi-Marin Diversion Multipurpose Project \u2013 NPR 2.5 billion<\/li>\n<\/ul>\n

    <\/p>\n

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    3) Road, Rail and Water Transport Infrastructure<\/h3>\n

    The Nepali government has significantly increased the budget for the transportation infrastructure to NPR 163.52 for the next fiscal from NPR 109 billion in 2019\/20.<\/p>\n

    \n
    • East-West Highway Upgradation \u2013 NPR 19.18 billion<\/li>\n
    • Mid-hill highway \u2013 NPR 12.20 billion<\/li>\n
    • Postal Highway \u2013 NPR 13.63 billion<\/li>\n
    • Kathmandu-Tarai Fast Track \u2013 NPR 15.1 billion<\/li>\n
    • Construction of 200 Bridges \u2013 NPR 7 billion<\/li>\n
    • Koteshwor-Kalanki Stretch \u2013 NPR 1.81 billion<\/li>\n<\/ul>\n

      Meanwhile, the government has allocated NPR 7.70 billion to develop the East-West and North-South rail networks, mono and metro rail systems.<\/p>\n

      <\/p>\n

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      \n

      4) Budget for Provincial and Local Governments<\/h3>\n

      The Nepali Government has reduced the Provincial Government’s budget for the next FY 2020\/21, as it significantly decreased \u2018conditional grants\u2019 while failing to increase \u2018equalization grant.’<\/p>\n

      \n
      • Fiscal Equalization Grant \u2013 NPR 145.25 billion<\/li>\n
      • Conditional Grant \u2013 NPR 168.42 billion<\/li>\n
      • Revenue Sharing \u2013 NPR 130.89 billion<\/li>\n
      • Complementary Grant \u2013 NPR 10 billion<\/li>\n
      • Special Grant \u2013 NPR 10 billion<\/li>\n<\/ul>\n

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        \n

        5) Education Sector<\/h3>\n

        The Nepali Government has allocated NPR 171.71 billion to the Ministry of Education, Science and Technology for the next fiscal, an increase by NPR 7.96 billion from last fiscal\u2019s NPR 165.76 billion allocation.<\/p>\n

        <\/p>\n

        \n
        • Education sector \u2013 NPR 17.43 billion<\/li>\n
        • Scholarships to 2.6 million students \u2013 NPR 2.70 billion<\/li>\n
        • Sanitary pads to 1.34 million female students \u2013 NPR 1.82 billion<\/li>\n
        • School Meal Program \u2013 NPR 7.92 billion<\/li>\n
        • Prime Minister Employment Program \u2013 NPR 11.60 billion<\/li>\n
        • President Education Sector Improvement \u2013 NPR 6 billion<\/li>\n
        • Free books and stationery \u2013 NPR 2.76 billion<\/li>\n
        • University Donation Forum \u2013 NPR 17.43 billion<\/li>\n
        • 6,000 volunteer teachers \u2013 NPR 2.23 billion<\/li>\n
        • Infrastructures development and education initiation in Madan Bhadari Science and Technology Institute \u2013 NPR 1 billion<\/li>\n<\/ul>\n

          Programs include:<\/strong><\/p>\n

          \n
          • Providing free education for secondary level students<\/li>\n
          • Announcing Literate Nepal mission<\/li>\n
          • Implementing virtual education, online education and television education<\/li>\n<\/ul>\n

            <\/p>\n

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            6) International Airports<\/h3>\n

            The Nepali Government has prioritized the construction of quality air infrastructures for safe, regular and credible air services in the upcoming FY 2020\/21.<\/p>\n

            The government has allocated NPR 19.42 billion for the construction and upgradation of international airports in the country.<\/p>\n

            The amount will be used for-<\/strong><\/p>\n

            \n
            • Completing the construction of Gautam Buddha International Airport (GBIA)<\/li>\n
            • Upgrading Tribhuvan International Airport (TIA)<\/li>\n
            • Completing the construction of Pokhara Regional International Airport<\/li>\n<\/ul>\n

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              \n

              7) Construction of Suspension Bridges<\/h3>\n

              The Nepali Government has planned to replace the improvised cable crossings with suspension bridges across the country.<\/p>\n

              The government has allocated NPR 5.02 billion for the construction of at least 2,200 suspension bridges.<\/p>\n

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              \n

              8) Promoting Agriculture Sector<\/h3>\n

              Unveiling the budget for FY 2020\/21, the Nepali Government has allocated NPR 68 billion to implement various farmer-focused programs.<\/p>\n

              The programs include-<\/strong><\/p>\n

              \n
              • Installation of weather radars at two locations<\/li>\n
              • Establishment of land banks at 300 locations<\/li>\n
              • Promotion of cooperative farming<\/li>\n
              • Set up one standard food testing lab each in Karnali and Gandaki Province<\/li>\n
              • Establishment of a well-equipped animal quarantine lab at all main customs points<\/li>\n
              • Set up 78 wholesale agriculture markets in all states<\/li>\n
              • Expand irrigation facilities in additional 22,000 hectares of land<\/li>\n
              • Establishing 5,000 small and medium irrigation systems in 25 districts<\/li>\n
              • Production of more than 5 million units of fruit saplings in the next fiscal<\/li>\n<\/ul>\n

                The budget allocation includes-<\/strong><\/p>\n

                \n
                • Promotion of Agricultural Products \u2013 NPR 41 billion<\/li>\n
                • Irrigation \u2013 NPR 27 billion<\/li>\n
                • Promotion of \u2018One Local Unit, One Pocket Product\u2019 \u2013 NPR 3.22 billion<\/li>\n
                • Promotion of Sugarcane Production \u2013 NPR 950 million<\/li>\n<\/ul>\n

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                  \n

                  9) Sports Sector<\/h3>\n

                  Through the FY 2020\/21 budget, the Nepali Government has allocated 1.63 billion for the development of the sports sector. However, the new budget is less than the previous year\u2019s budget allocation of NPR 3.99 billion.<\/p>\n

                  Let\u2019s hope that the new budget 2020-21 (2077-78) will help the Nepali Government to combat the economic disruption caused by the COVID-19 pandemic and prepare for uncertain future ahead.<\/p>\n

                  <\/p>\n

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                  \n

                  10) Promoting Green Energy<\/h3>\n

                  The government has allocated NPR 4.13 billion to promote green energy sources such as hydropower, solar energy and production of electricity from organic waste.<\/p>\n

                  Moreover, Nepal is set to add 1,300 MW of electricity to the national grid in the coming fiscal year.<\/p>\n

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                  \n

                  11) Supporting Tourism and SMEs<\/h3>\n

                  The government has allocated NPR 50 billion to support the tourism industry and small and medium enterprises (SMEs) affected by COVID-19.<\/p>\n

                  Nepal has allocated NPR 2.68 billion amount for the development and promotion of tourism infrastructure to attract tourists.<\/p>\n

                  Moreover, the tourism industry will also get an income tax rebate of up to 20% and loans will be interest-free for this fiscal.<\/p><\/blockquote>\n

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                  \n

                  12) Boosting Infrastructure Projects<\/h3>\n

                  The Nepali Government has allocated NPR 138 billion for various infrastructure development projects.<\/p>\n

                  \n
                  • NPR 8.93 Billion – Kathmandu-Tarai Fast Track<\/li>\n
                  • NPR 19.42 Billion – International airport construction and preparation in Pokhara, Bhairahawa and Nijgadh, and upgrading of Kathmandu airport<\/li>\n
                  • NPR 6.42 Billion – Tunnel road projects<\/li>\n
                  • NPR 5.4 Billion – Melamchi water supply project<\/li>\n<\/ul>\n

                    <\/p>\n

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                    13) Labor and Employment<\/h3>\n

                    Through the FY 2020\/21 Budget, the Nepali Government has given priority to implementing various programs to provide labor and employment opportunities in the country.<\/p>\n

                    The government has allocated NPR 1 billion for providing employment for 1 lakh people from sectors affected by COVID-19.<\/p>\n

                    The programs include-<\/p>\n

                    \n
                    • Promoting “Building Our Village on Our Own” program<\/li>\n
                    • Loan Interest rate for startups for BFIs – 2%<\/li>\n
                    • Creating 150,000 job opportunities in the agricultural sector<\/li>\n<\/ul>\n

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                      \n

                      14) Social Security<\/h3>\n

                      <\/p>\n

                      The government has allocated NPR 67.50 billion for social security. Various programs under social security include-<\/p>\n

                      \n
                      • Providing social security allowances<\/li>\n
                      • Providing insurance to 3 lakhs senior citizens<\/li>\n
                      • Making infrastructures disable friendly<\/li>\n
                      • Providing free equipment for blind people<\/li>\n<\/ul>\n

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                        15) Financial Sectors<\/h3>\n

                        Unveiling the Federal Budget for FY 2020\/21, the Nepali Government has emphasized on supporting and developing financial institutions in the country.<\/p>\n

                        The government has allocated NPR 13.96 billion for interest, loan and insurance subsidy.<\/p>\n

                        The programs include:<\/strong><\/p>\n

                        \n
                        • Encouraging Banking and Finance Institutes (BFIs) to implement mergers and acquisitions<\/li>\n
                        • Embracing BFIs to uplift industries affected by the pandemic<\/li>\n
                        • Promoting digitization and cashless economy<\/li>\n
                        • Broader interest rate brackets up to 5% to special convenience loans<\/li>\n
                        • Promoting mobile and internet banking in remote areas<\/li>\n
                        • Strengthening microfinance operation<\/li>\n
                        • Extension in insurance for industries and public transportation affected by COVID-19<\/li>\n
                        • Promoting debenture<\/li>\n
                        • Implementation of national payment gateway<\/li>\n
                        • Digitizing NEPSE<\/li>\n
                        • Implementing convenient E-payment for all kinds of utilities<\/li>\n<\/ul>\n

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                          Source: NepalInData<\/p><\/div>\n

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                          Watch Live Nepal Budget Speech 2020\/21 (2077\/78)<\/h3>\n