Nepal · May 30, 2021 0

Nepal Budget for Fiscal Year 2078/79 (2021/22) . With Budget Speech

Table of Contents

Nepal Budget for Fiscal Year 2078/79

The Nepal government has presented a budget of Rs. 1,647.57 billion for the coming Fiscal Year 2078/79.This year, the target is to receive Rs 63 billion from foreign grants. A loan of Rs. 309.29 billion will be taken from foreign development partners.

Finance Minister Bishnu Prasad Poudel has given such information while presenting the annual budget statement of the coming fiscal year. The government has presented a budget of Rs. 172.93 billion more than the current fiscal year.The government has also increased the revenue collection target in FY 2078/79. The government has set a target of collecting Rs 1.024 trillion from revenue.

This is the Translated Version Of speech given by Finance Minister Bishnu Prasad Poudel . If There Is mistake in translate please inform me . 

 

Budget  Of Nepal

Budget Speech of Nepal Budget for Fiscal Year 2078/79

The government has allocated a total budget of Rs. 1,647.57 billion for the coming fiscal year.The government has allocated Rs. 678.61 billion for the current account and Rs. 347.26 billion for the capital account.See the full text of the budget presented by  the Finance Minister of Nepal .

Respected sisters and brothers,

I am here to make public the details of the budget for the Fiscal Year 2078/07 with the conviction that we can save the lives of the people and revive the economy by making it dynamic in the face of the most challenging situation of our lifetime created by the Covid-19 epidemic.

As the House of Representatives was dissolved as per the provisions of the constitution, it was not possible to present the estimates of revenue and expenditure in the federal parliament.

The Kovid-19 epidemic, which appeared in early 2020, has severely affected our journey of development and prosperity. Many Nepalis have lost their jobs and employment due to the Kovid epidemic and the measures taken to prevent and control it. Despite tireless efforts to prevent, control and treat the infection, a large number of Nepalis have lost their lives. I pay my heartfelt tribute to the Nepalis who died from this epidemic. I extend my condolences to the families of the deceased. I wish the infected patient a speedy recovery.

Today is May 30, Republic Day. I pay my respects to all the martyrs who sacrificed their lives in the movement for the establishment of a federal democratic republic. I express my heartfelt respect to the elders and sisters who have led and contributed to these movements.

As the risk of the second wave of the Covid-19 epidemic increases, so do the challenges we face. The duration of the risk of infection and its impact is still uncertain. In this time of crisis, the government has given the highest priority to the responsibility of saving the lives of every Nepali.

The Federal Democratic Republic, founded on the foundation of the historic people’s movement, has given us the basis to move towards lasting peace, stability, development, prosperity, social justice and socialism. Every Nepali’s desire for change and the dream of development and prosperity has opened the door to the possibility. A multi-faceted and rapid development with social justice has laid a strong foundation for fulfilling the national aspirations of a prosperous Nepal and happy Nepalis. The faint dreams of the people have been awakened and it has become possible to move forward by setting new standards of development and prosperity.

Under the leadership of the present government, we have achieved remarkable success in the field of development and social justice. The decades-old Melamchi Drinking Water Project has come into operation. The results of the economic recovery are remarkable. We have succeeded in conveying the positive message that the drive for development can be accelerated by moving forward with the right policies, competent leadership, strong confidence and dedication.

In formulating next year’s budget, I have taken the Constitution of Nepal, Election Manifesto, Fifteenth Plan, National Aspiration of Prosperous Nepal and Happy Nepal, Determination of Developing Nation and Sustainable Development Goals as important basis. Ending all forms of social and economic discrimination I have been guided by the objective of building the basis of socialism. I have also given due importance to the suggestions received from the people’s representatives, private sector, intellectuals, professionals and the general public.

Respected sisters and brothers,

The Economic Survey 2077/78, which includes important indicators, details and statistics of the economy, has been made public. I will now briefly present the current state of the country’s economy:

As economic activity was affected by the Kovid-19 epidemic, the economic growth rate turned negative at 2.1 percent in the last fiscal year. The economic growth rate is projected to be around 4 percent in the current fiscal year as a positive result of the economic recovery policies and programs implemented by the government.

The per capita GDP at current prices last year was USD  1,126, but this year the per capita disposable income is estimated at  1,191. Investment is projected to be 30.8 percent of GDP and 31.4 percent of national savings.

Inflation is under control as the supply chain has been regularized despite health risks. Consumer price inflation, which stood at 6.7 percent last year, has been limited to 1 percent in the first nine months of the current fiscal year.

The balance of payments position is in surplus, remittance inflows have increased, foreign exchange reserves are adequate, credit and deposit growth has been positive, capital market turnover has been increasing. However, the second wave of COVID-19 is expected to put pressure on these indicators in the coming days.

In the first 10 months of the current Fiscal Year, the revenue collection on government expenditure has increased by 14.1 percent as compared to the same period of the previous year. Foreign aid commitment of Rs. The increase has reached Rs. 294.33 billion. 91.47 billion revenue has been distributed.

In the first nine months of the current fiscal, exports grew by 20.2 percent and imports by 13.1 percent. The deficit in the trade deficit is Rs. 42.54 billion. Foreign exchange reserves reached Rs. 14.33 billion.

It is estimated that 85.9 percent of the total allocation will be spent in the current Fiscal Year. Out of the appropriation, 91.4 percent will be spent on current expenditure, 71.3 percent on capital expenditure and 85.2 percent on financial management.

Revenue collection is estimated to be 94.8 percent compared to the current fiscal year target. Foreign grant Rs. 27.06 billion and foreign debt of Rs. 1 trillion 65.10 billion is estimated to be mobilized. 2 trillion 23 billion is estimated to be operational.

Respected sisters and brothers,

Now, the objectives and priorities of the budget for the coming Fiscal Year 2078/79

 

The objectives of the budget are as follows:

  • To save the lives of citizens from the epidemic of Covid-19,
  • Accelerate economic activity and development programs to revive the economy,
  • Strengthen the public welfare role of the state, provide social security and protection and achieve prosperity with social justice, and To build uplifting economy by mobilizing the available resources in public, private and cooperative sectors in productive sector.
  • To achieve the objectives of the budget, I have set the following priorities:
  • Expansion of tests for prevention, control and treatment of COVID-19, provision of treatment, supply of health equipment and supplies, assurance of free vaccination, development of health infrastructure, effective mobilization of physicians and health workers,
  • Expansion of economic activities through relief to the families affected by COVID-19, encouragement to the private sector, facilitation and rehabilitation,
  • Ensuring jobs and employment for workers entering the labor market and losing jobs,
  • Social security and protection based on life cycle for all Nepalis,
  • Guarantee of agricultural production and productivity growth and food security,
  • Investment in infrastructure for lifelong and skilled education,
  • Rapid industrialization and construction of strategically important infrastructure for quick returns,
  • Balanced development through coordination and cooperation between the Union, the states and the local level,
  • End all forms of discrimination and inequality, equitable development and equitable access to the fruits of development,
  • Accountability governance, guaranteeing peace and security, controlling corruption, good governance and effectiveness in service delivery.

 

Respected sisters and brothers,

I present the details of financial transfers at the federal, state and local levels:

I have increased the equalization, special and supplementary grants to be transferred to the state and local level as well as conditional grants to be provided for the federal projects and programs to be implemented from the state and local level.

Based on the formula prescribed by the National Natural Resources and Finance Commission, Rs. 57.95 billion and Rs. 94.56 billion equalization grant has been allocated. Towards conditional grant, Rs. 35.87 billion and Rs. I have allocated Rs. 173.50 billion. Towards supplementary grant Rs. 12.37 billion and Rs. I have allocated Rs. 12.46 billion. I have estimated Rs. 126.69 billion at the state and local level for revenue sharing.

I have made arrangements for financial transfer through conditional grant for the projects to be operated with the co-investment of federal, state and local level. I will now present the budget programs and appropriations for the coming Fiscal Year.

Budget Heads :

Covid-19 Infection prevention, control and treatment

The government is committed to saving the lives of all Nepalis by providing reliable arrangements for the prevention, control and treatment of the Kovid epidemic. The budget is focused on utilizing all available resources to reduce health risks. There will be no shortage of budget for prevention, control, treatment and vaccination of Covid-19.

I have arranged free testing and treatment of Covid-19 in all government laboratories and hospitals. I have provided necessary budget for the purchase of oxygen plants, cylinders and liquid oxygen transportation and storage tanks for the treatment of patients infected with COVID.

I have given full exemption from customs and value added tax on the import of equipment required for the establishment of oxygen industry. I have made an arrangement to provide capital grant of 50 percent of the cost if the community and private hospitals connect oxygen plants. I have made an arrangement to give 50 percent discount on the electricity tariff for producing oxygen during the Covid-19 epidemic period.

I have allocated Rs. 4 billion for the purchase of ICU, HDU, ventilator, test kits and other necessary equipment for the treatment of Kovid-19 patients. I have exempted customs duty on the import of drugs used in the treatment of Covid-19. In order to prevent shortage of manpower in the treatment service, I have made an arrangement to send the retired and internship doctors, nurses and health workers to the hospital on a one-year service contract with 50 percent risk allowance and salary.

In order to control the risk of COVID-19 infection, health desk operation and holding center will be established at international border checkpoints and airports. There will be no shortage of beds in the hospital.

I have made an arrangement to provide free services including continuous monitoring of the health condition of the patients infected with COVID-19 at home, mobile services for counseling and treatment, call center operation, psychosocial counseling, emergency treatment and oxygen support.

The present Government of Public Accountability is committed to provide free vaccine against COVID-19 to all Nepali brothers and sisters. The vaccination campaign will be completed by obtaining vaccinations from the productive countries and companies using the highest possible resources and capabilities to ensure the immunization of Nepalis of all age groups remaining vaccinated as soon as possible. I have allocated Rs. 26.75 billion for vaccine management.

The concept of Central Command will be implemented to provide treatment services for patients infected with COVID-19 from all types of hospitals and health institutions. I have made arrangements to make public the details of availability of specialist doctors, oxygen and ventilator, ICU, HDU and bed regularly.

Other facilities including risk allowance provided to health workers, laboratory workers, cleaners and security personnel who are directly involved in the treatment of COVID-19 as an incentive have been continued for the duration of infection risk.

I have allocated Rs. 37.53 billion for the prevention, control and treatment of COVID-19.

Improving the health system

The fundamental right of the citizen to get free basic health care will be ensured. Arrangements will be made to make 70 types of medicines being distributed free of cost by the government continuously available in all health institutions. The price and quality of medicines will be monitored regularly. I have allocated Rs. 5.60 billion for the purchase of medicines.

The current grant for the treatment of heart disease, kidney disease, cancer, Parkinson’s, Alzheimer’s, spinal injury, head injury and sickle cell anemia and free heart disease treatment facility for children under 14 years and senior citizens above 70 years has been continued. I have allocated Rs. 2.5 billion for this.

Within the next Fiscal Year, I have allocated Rs. 1.30 billion for the construction of 300-bed infectious disease hospital in Kathmandu Valley and 50-bed infectious disease hospital in all the states.

Maternity and neonatal care services will be brought into operation in all the district hospitals. In order to improve maternal health, maternal waiting homes with prenatal health check-ups and medical facilities will be set up in 20 remote areas including Humla, Dolpa, Mugu and Bajhang.

In order to ensure quality health care to the general public, the construction work of 377 local level five, ten and fifteen bed basic hospitals started from this year will be completed and brought into operation within two years. The remaining local level construction work will be started within the next Fiscal Year. I have allocated Rs. 6 billion 150 million for this.

I have allocated budget for the child health and nutrition program to be implemented at the local level. I have provided budget to make the country fully vaccinated next year by providing 13 types of vaccination services including VCG, polio, DPT, measles, typhoid to children. Vaccination services will be provided to 620,000 children next year.

Along with the expansion of hospitals and health posts, access of general public to health services will be established through telemedicine, mobile health services, free pregnancy test services, maternity services, vaccination services, community based rehabilitation and palliative services.

The transportation cost being provided to 52 thousand women health volunteers across the country has been increased by 100 percent to Rs. I have reached 12 thousand.

All local levels will be declared tuberculosis free within the next two years. I have allocated Rs. 1.46 billion for malaria, tuberculosis, AIDS and sexually transmitted diseases and leprosy control programs.

Arrangements have been made to establish, upgrade and expand specialized hospitals with skilled doctors and modern equipments for the diagnosis and treatment of cancer diseases including high blood pressure, diabetes, heart and kidney diseases and cancer which are increasing due to changing lifestyle, diet and environmental pollution.

I have made an arrangement to check the blood pressure, urine and blood glucose test, breast cancer and cervical cancer of the citizens above 40 years of age free of cost once a year. Vaccination program against cervical cancer will be conducted in nine districts of the three states.

Arrangements will be made for all medical colleges, health science institutes and central hospitals to run satellite clinics with specialist services on a regular basis in at least one government hospital. Arrangement will be made for the health institutions with a capacity of more than 50 beds to run mobile clinics in their service area once a month.

Arrangements will be made to set aside a minimum of ten beds for the treatment of mental illness in community and private hospitals with a capacity of more than two hundred beds. Senior citizen treatment rooms will be constructed in hospitals with a capacity of more than fifty beds.

Nephrology, Urology, Neurology, Neuro Surgery, Spinal Surgery, Cardiology, Cardiology, Cardiology, Pulmonology etc. I have started the construction work of 1,500 state-of-the-art super specialty center for specialized treatment services, diagnostic center and study, teaching and research of the disease and have budgeted to bring it into operation within the next three years.

Bhaktapur Cancer Hospital, BP Koirala Memorial Cancer Hospital and Sushil Koirala Acute Cancer Hospital will be run under this institute by establishing National Institute of Cancer Studies for the study, research and treatment of cancer.

I have allocated Rs. 1.28 billion for the construction of infrastructure of Manmohan Cardio Vascular and Transplant Center, Tribhuvan University Teaching Hospital, VP Koirala Cancer Hospital, GP Koirala National Respiratory Treatment Center, Sushil Koirala Intensive Care Hospital and Ram Raja Prasad Singh Institute of Health Sciences.
I have allocated Rs. 340 million for the construction of infrastructure including Kasi Children’s Hospital’s Asi Ward. I have allocated Rs.

State-of-the-art facilities at Duwakot in Bhaktapur to operate the expanded services of Veer Hospital.A hospital will be built. With the aim of completing the construction and operating the service within three years, detailed project report and pre-preparation work will be completed in the coming Fiscal Year. Arrangements will be made to implement it through a separate project office by including it in the project of national pride.

I have allocated budget to establish Trauma Centers in Dhalkewar, Bardaghat and Lamki in the coming Fiscal Year. Feasibility study will be done to establish a trauma center in Velkhu of Dhading.

The National Public Health Laboratory will be upgraded as a Center of Excellence by providing infrastructure development and necessary equipment to end the compulsion to send samples abroad for diagnostic tests. I have allocated budget to upgrade the provincial laboratory to a referral laboratory. A separate mechanism will be set up to regulate.
In order to make the Healthy Nepal Campaign effective, citizen awareness program will be conducted for clean thinking, healthy food and regular exercise. Ayurveda, naturopathy and other alternative medicine methods will be promoted. Ayurvedic hospitals and naturopathic hospitals will be established in all the states.

Within the coming Fiscal Year, health insurance program will be expanded at all local levels and at least 50 percent of the families will be brought under the scope of insurance. The institutional capacity of the Health Insurance Board will be enhanced. Alternative financial resources will be provided for the sustainability of the insurance program. I have allocated Rs. 7.5 billion to run health insurance program.

Integrated legislation will be formulated to make the role of Health Science Academy, Commission and Research Center effective. Necessary posts will be added for newly established and upgraded hospitals and health institutions.
I have increased the budget of the Ministry of Health and Population to Rs. 122.77 billion.

Now I present relief, facilitation and economic recovery programs and appropriations:

Relief, facilitation and economic recovery : Nepal Budget for Fiscal Year 2078/79

Relief, facilitation and economic recovery programs will be implemented to revitalize the economy, which has been weakened due to the adverse effects of the Covid epidemic, to promote the main operating sector of the economy and to achieve the goal of rapid economic growth.

In order to improve the health of the citizens by ensuring quality drinking water service, Nepal Drinking Water Institute, Kathmandu Upatyaka Khanepani Limited and the local level have made an arrangement to provide free drinking water tariff of up to 20,000 liters monthly to the domestic consumers free of cost from this month.

I have made an arrangement to give 20 percent discount on the selling price of rice, flour, pulses, salt, edible oil, sugar and cooking gas sold by food management and trading companies and salt trading companies during the ban period.

I have made an arrangement to give full exemption to the demand fee and tariff of electricity for all types of drinking water and irrigation consumer committee including partnership, Sahalgani. During the period of prohibition, 100 percent tariff will be given to those consuming up to 20 units per month, 50 percent to those consuming up to 150 units per month and 30 percent to those consuming up to 250 units.

Arrangements will be made to exempt manufacturing industries, hotels and film industries from electricity demand charges during the prohibition period.

Businesses such as tourism business including Covid-19 affected hotel, travel, trekking, public transport, air service, film industry, handicraft industry, media house, advertising service, tailoring, beauty parlor, health club are allowed to pay in FY 2078/79. And I have made an arrangement to renew automatically by waiving the renewal fee.

I have made an arrangement to provide the amount as per the criteria set by the Government of Nepal if the hotel which could not come into operation due to Kovid epidemic is operated as an isolation center. Facilities like productive industries will be provided to the hotel and tourism sector.

I have made an arrangement to provide 25 percent subsidy on the transportation fare of milk, vegetables, fruits, fish, meat and other perishable consumer goods from the place of production to the nearest market center. 50 percent subsidy will be provided through local level for the purchase of paddy seeds for small farmers.

With the objective of assisting the students studying in higher secondary and higher levels of public schools and campuses in alternative learning, I have made an arrangement to purchase a laptop and provide loan up to Rs. 80,000 at one percent interest rate for a period of two years. One SIM card will be provided free of cost to students above 16 years of age.

I have allocated the budget in such a way that the Government of Nepal will bear the contribution amount of June and July 2078 to be deposited by the workers and employers affiliated to the Social Security Fund.

I have given continuity to the Professional Continuity Fund established for the remuneration of the workers and employees working in domestic, small, medium and large scale industries, tourism, private educational institutions, transportation, film industry and media houses and for running the business.

Arrangement will be made to give up to 50 percent discount on the rent to be paid by the businessmen who have rented houses, warehouses or land of government and government owned bodies.

I have made an arrangement to extend the term of the bank guarantee for a period of six months and not to charge any fee for extending the period of bank guarantee. Funds will be mobilized from the Construction Entrepreneur Fund for capacity building and business interests of construction entrepreneurs.

I have given continuity to the refinancing facility being provided by Nepal Rastra Bank at five percent interest rate for the entrepreneurs affected by COVID-19. The scope of business and the limit of amount to be availed to use the refinancing facility will be expanded.
The scope and scope of concessional loans provided to small, medium and medium enterprises, commercial agriculture, youth enterprises, women enterprises and persons returning from foreign employment will be expanded. Five percent interest subsidy will be provided for this purpose. I have allocated Rs. 13 billion.

In order to promote domestic tourism, the employees of civil servants, public institutions and establishments will be provided tourism work with the amount of 10 days remuneration. Employees working in the private sector will also be encouraged to provide similar facilities.

Public-private partnership concept will be implemented in road, energy, railway and airport project construction, operation and maintenance. Legal arrangement will be made to provide capital grant up to 30 percent of project cost for viability gap funding. It is believed to promote private investment and contribute to job creation. I have arranged budget for gap funding.

In order to motivate young entrepreneurs to get involved in startup business, the project has pledged Rs. Up to Rs. 2.5 million seed capital loan will be provided. Arrangement has been made to provide startup business registration, renewal and other services free of cost through one-stop system. Policy facilitation will be provided to attract foreign investment in startup business. For this, Rs. I have set up a challenge fund of Rs. 1 billion.
One month tourist visa will be provided free of cost to foreign tourists visiting Nepal.

I present programs and allocations related to social security . 

Click Here To Read In Nepali :

Labor and job creation : Nepal Budget for Fiscal Year 2078/79

Work and employment opportunities will be created in coordination and cooperation of government, private, cooperative and non-government sectors to ensure decent employment to all citizens.

Restructuring of the Prime Minister’s Employment Program will ensure a minimum of 100 days of employment for the poor unemployed. Procurement Agreement Arrangements will be made to create 2 lakh jobs next year from the Prime Minister’s Employment Program. I have allocated Rs. 12 billion.

Handicraft, Plumbing, Electrical Repair, Electronics, Cook, Craftsman, Carpenter, Docker, Sewing, Beautician, Haircut, Vehicle and Mobile Repair To provide skill development training to additional 1 lakh people in businesses including Rs. I have allocated Rs. 400 million.

In order to develop skilled manpower as per the requirement of the indigenous industries, Rs. 1 billion has been allocated. Under this, basic training will be given to the trainee workers and arrangements will be made to ensure employment for at least 2 years in the same industry. This program will create an additional 25,000 jobs next year.
A concessional loan of up to Rs. 25 lakhs at a maximum interest rate of five percent will be provided to the youth who have graduated or above with the educational certificate obtained by them.

All forms of discrimination and violence in the workplace will be abolished. The principle of equal pay for equal work will be implemented. The provision of labor audit will be effectively implemented.

Arrangements will be made to insure the workers and workers working in industrial establishments and organized sector free of cost. Collective accident insurance of workers involved in construction work by public bodies will be made mandatory.

Social security and protection : Nepal Budget for Fiscal Year 2078/79

Health check-ups and nutrition during pregnancy in line with the concept of social security and protection based on life cycle; Provision of free childhood immunizations, nutrition, basic education and scholarships; Guaranteeing education, health and employment in youth; The government is committed to ensuring free treatment and a dignified life in old age. Accordingly, all types of social security allowances have been increased by 33 percent and the monthly allowance of senior citizens has been increased to Rs  4,000. For social security allowance, I have allocated Rs 1 kharb .

I have increased the amount of child protection grant provided to the children of orphans, dalits, disabled and destitute families by one third.

The Government of Nepal will bear the responsibility of protecting the disabled, helpless and abandoned persons. All kinds of child labor will be ended. Necessary services, facilities, treatment and accommodation will be provided and a road free Nepal will be built. The concept of street child free Nepal will be implemented by finding, protecting and rehabilitating children. Grants will be provided to encourage the organizations working in this field.

Feasibility study will be done for the establishment of Disability Rehabilitation Centers in all the states. Treatment services for children with intellectual disabilities will be made easy and effective. I have given continuity to the arrangement of providing subsidy to the organization producing the accessories used by persons with disabilities. Public physical infrastructure, infrastructure and means of transportation will be made disability friendly.

By amending the Contribution Based Pension Fund Act, professors, teachers and other public servants will also be included in this system. The scope of contribution-based social security fund will be widened to include self-employed persons, unorganized sector workers and contract and salaried workers.

For the Ministry of Labor, Employment and Social Security. I have allocated Rs. 14 billion.

Women, children and senior citizens

Gender equality policy will be adopted in all organs of the state. At least 33 percent participation of women will be ensured in the executive level of the body to be operated with the grant from the Government of Nepal.
Women’s entrepreneurship will be developed through the Presidential Women’s Upliftment Program.

Disadvantaged women will be imparted skill-based training and involved in income generating activities. Women Entrepreneurship Facilitation Centers will be established at all local levels. Aerial rescue of pregnant and lactating women in remote areas will be made more effective.

The practice of dowry as a social stigma will be ended. Social awareness, empowerment, women’s education programs will be conducted to end violence, discrimination and violence against women. Strict legal provisions will be made against violence against women. A Mangala-Sahna Rehabilitation Center will be constructed at Suryabinayak in Bhaktapur to protect the homeless women who have been subjected to domestic violence.

Programs will be implemented for income generation, capacity building and empowerment of women and adolescents of all deprived communities including Disadvantaged, Dalit, Adivasi, Janajati, Single Women, Women with Disabilities, Wadi, Kamalari, Kamaiya, Chepang, Raute, Endangered, Marginalized and others.

For the mental and physical development of children, nutritious food, access to quality health care, sports and recreational opportunities will be provided. Kindergartens and children’s recreation areas will be constructed in 15 places in partnership with the local level.

A children’s intellectual academy will be established for the all-round development of children and promotion of children’s literature. A Children’s Paradise with quality education will be established in Damak, Jhapa to develop the multi-dimensional talents of the children.

Morang, Bhaktapur, Kaski and Rabanke districts will be run by the government. I have allocated budget to build a well-organized juvenile home in Dhakaltar, Tanahu.
In order to protect, promote and regulate child rights, I have made arrangements for child welfare officers at all local levels across the country.

Arrangements will be made for the treatment of senior citizens by establishing separate wards in health institutions with more than 100 beds. I have provided necessary funds for the construction of 500 capacity senior citizen housing including hospital facility in Gothatar, Kathmandu.

Arrangements will be made for free medical treatment and protection for single women, widows and widowers, physically and mentally handicapped, helpless, senior citizens without their families and protection. Arrangements will be made for free medical treatment for senior citizens affected by Alzheimer’s disease and old age.
In the field of women, children and senior citizens, Rs. 1 billion 200 million has been allocated.

Now I present the programs and appropriations of agriculture, forest, industry, commerce, tourism and other economic sectors

Agriculture and livestock development

Agriculture sector will be modernized and commercialized and developed as the mainstay of an uplifting economy. Arrangements will be made to benefit the productive farmers from the value chain of agricultural produce. Cultivation will be encouraged.

The effectiveness of the Prime Minister’s Agriculture Modernization Project will be enhanced. An additional 71 zones including agricultural crops, fisheries and livestock production will be brought into operation. A rubber zone will be brought into operation to promote rubber farming.

Conditional grant will be provided to the local level for the purchase of combined harvester, power tiller, cultivator, rotavator, harrow and other equipments in the pocket area. In order to provide technical assistance to the farmers of the project area, 300 students studying at the undergraduate level in the field of agriculture will be assigned as interns. I have allocated Rs. 7.98 billion for the implementation of this project.

A policy of leasing to the private sector for commercial farming in unused government agricultural firms and barren lands will be adopted. I have allocated budget to encourage the private sector for commercial animal husbandry in Bhojpur, Nuwakot, Baitadi and other districts of the hilly region.

Cultivation of arable land will be encouraged on the basis of geographical and seasonal suitability by classifying and testing the soil. Digital swallow mapping system will be implemented by increasing the capacity of soil testing laboratory.

The existing agricultural subsidy system will be reviewed and production based incentive grants will be provided to farmers, agri-entrepreneurs, farmer groups and cooperatives. I have increased the range and percentage of tax and duty exemption given on the import of equipment and its parts.

5 million fruit saplings will be produced by establishing medium and high technology multi-purpose nurseries.
Adequate supply of chemical fertilizers will be ensured before the time of planting. I have allocated budget to move ahead with the preliminary work of establishing chemical fertilizer factories within three years. By increasing the subsidy provided to chemical fertilizers to Rs. 12 billion.

The use of organic fertilizers and organic pesticides will be encouraged to promote organic farming. Branding, certification and marketing of produce produced in the pocket area of ​​organic farming will be promoted. I have made an arrangement to provide up to 50 percent capital subsidy to the private sector for setting up organic pesticide factories.

Agricultural production processing centers and industrial agricultural markets with storage facilities will be established in all the states.

Arrangements will be made to procure through food management and trade companies and agricultural cooperatives to make the supply management easy and regular by storing the agricultural products including paddy, wheat and maize with minimum support price. 200 food storage centers, 89 cold storage stores will be established through local level. I have made an arrangement to provide 50 percent subsidy in the home insurance premium. I have allocated Rs. 84 crore.

Agricultural wholesale markets will be established in 17 places including Mechinagar, Rangeli, Ratnanagar, Kageshwari Manhara and Sandhikharka through the state and local level. Preparations will be made for the establishment of agricultural wholesale markets in Kapurkot of Salyan and Silgadhi of Doti.

Construction work of wholesale market with modern technology will be started at Karsaghat of Rupendehi to collect, process and brand agricultural produce and distribute it in domestic and international markets.
The unreasonable profit of the intermediary will be controlled to ensure that the productive farmers get the real value of the agricultural produce.

For the development of agri-based enterprises and value chain, I have allocated Rs. I have allocated Rs. 7.60 billion. The scope of agricultural and livestock insurance will be expanded so that interested farmers can participate. I have given continuity to the system of giving 50 percent subsidy for livestock and livestock insurance premium.
Nepal will be made self-sufficient in milk and vegetables within two years, wheat, maize, millet and sorghum within three years and rice within five years.

Establishment of Milk Collection and Moisture Centers at Biratnagar, Pokhara and other places to ensure market for milk produced by farmers and Capacity will be expanded. In order to increase the consumption of domestically produced milk and milk products, I have made an arrangement to provide up to 35 percent capital subsidy for the establishment of high temperature milk processing and powdered milk factory with the investment of private and cooperative organizations.

In order to promote commercial apple cultivation in Manang, Mustang, Jumla and other Himalayan districts, I have arranged 50 percent subsidy for the purchase of Verna. Mission Okhar program will be conducted in 9 districts including Solukhumbu, Jajarkot and Vaitadi. Commercial lemon cultivation expansion program will be conducted in 10 districts including Bhojpur, Kavre, Parbat, Syangja, Dang and Dadeldhura.

Improved herd construction, livestock, feed and grass production and steppe area development and expansion programs will be conducted. Artificial insemination mission programs will be conducted at 468 local levels of the country and 7 lakh improved breeds of cows, buffaloes and goats will be produced. Artificial insemination service will be provided free of cost.

Nepal will be made self-sufficient in vaccine production to control epidemics in cows, buffaloes and chickens. I have allocated necessary funds for animal health improvement program.
The private sector will be facilitated and encouraged to build clean and well-organized model livestock slaughterhouses in all the states. Modern slaughterhouses will be established in Biratnagar, Pokhara, Surkhet and Dhangadhi.
Investment in agricultural research will be increased. Hybrid varieties of cereals, vegetables and fruits will be developed by the Nepal Agricultural Research Council. Cooperation will be made with the university to conserve seeds and breeds of indigenous species. Farmers will be encouraged to change seeds every two years to increase agricultural production. Rs. I have allocated Rs. 3 billion.

In order to provide theoretical and practical knowledge of modern technology in agricultural production, one agricultural farm in each of the states including Chandradangi of Jhapa and Nawalpur of Sarlahi will be developed and brought into operation within two years as a center of excellence.

Access to food and nutrition will be expanded to landless farmers, dalits and economically and socially backward classes and communities in order to implement the government’s resolution that no one will starve, no one will die of hunger. Hunger will end.

The capacity of the monitoring body will be enhanced to maintain the hygiene and quality of food items. The scope and scope of food hygiene testing will be expanded by developing the National Food and Grain Reference Laboratory in accordance with international standards. Mobile service will be started for testing of pesticide residues in major agricultural wholesale and haat markets.

Towards Agriculture and Livestock Development Rs. I have allocated Rs. 45.09 billion.

Irrigation

Agricultural productivity and productivity will be increased by providing irrigation facilities on arable land through river diversion, canal, lift, canal and underground irrigation system. I have allocated budget. Irrigation facility will be expanded in additional 29,400 hectares of arable land next year.

Irrigation facility will be provided to additional 2 thousand hectares of land from the west main canal of Sikta Irrigation Project. Irrigation facility will be extended to additional 6 thousand hectares of land by constructing additional 20 km main canal and 12 km branch canal from the eastern section of the project next year. The entire construction work of Sikta Irrigation Project will be completed within the next two years. I have allocated Rs. 1.56 billion for this.

Under the first phase of Rani-Jamara-Kulariya Irrigation Project, 9 km main canal construction work will be completed next year and additional 7,000 hectares of land will be irrigated. Under the second phase, 15 km root and 5 km branch canal construction up to Kandra Khola of Lamki Extension will be completed within the next 3 years. Irrigation facility will be provided to 20 thousand 300 hectares of land. 4.7 MW electricity will be generated from the power house under the project. I have allocated Rs. 2.35 billion for this project.

Under the third phase of Mahakali Irrigation Project, I have allocated Rs. 1.25 billion for the construction of 10 km main canal and construction of Bahmadev Mandi area branch canal to provide irrigation facility to 2900 hectares of land. To complete and maintain the remaining 8 km canal of western section of Babai Irrigation Project. I have allocated Rs. 1.44 billion.

I have allocated Rs. 1.61 billion for the construction of small, medium and large scale irrigation projects including Praganna, Badkapath, Bagmati, Palungtar and Greater Dang Valley. These projects will provide irrigation facility to an additional 600 hectares of agricultural land next year.

We have entered a new era of water resource utilization by diverting water from one river to another through tunnels for multi-purpose use of drinking water, irrigation and electricity. The facility will be expanded .The headworks of the Bheri-Babai Diversion Multipurpose Project under construction will be completed in the coming Fiscal Year.

Irrigation facilities will be expanded in additional 15,000 hectares of land in Banke and Bardiya districts within two years and construction of 48 MW power house will be completed. Rs. 3.07 billion has been allocated for this project. I have prepared budget to start construction of Naumure Multipurpose River Diversion Project by preparing DPR.

The tunnel construction work of Sunkoshi-Marin Multipurpose River Diversion Project, which will lay the foundation for economic transformation of the entire province by providing irrigation facilities to 122,000 hectares of arable land in Province No. 2 including Dhanusha, Mahottari, Sarlahi and Rautahat of Terai-Madhesh, will be expedited. And construction of power house will be started.

Upon completion of the project, construction of main and branch canal will be completed to provide irrigation facility to the agricultural land of the entire command area. The entire work of the project will be completed within four years. I have allocated Rs. 2.46 billion for this project.

Next year, detailed project report of Tamor-Chisang and Kali Gandaki-Tinau river diversion project will be prepared and construction work will be started by determining the project implementation framework and resource management. To prepare detailed project report of Madi-Dang and West Seti-Kailali river diversion project. I have allocated budget.

Under the Prosperous Terai-Madhes Irrigation Development Program for the coming Fiscal Year, 5,000 shallow tubewells and 200 deep tubewells will be connected to expand irrigation facilities in 20,000 hectares of arable land in 25 districts including Jhapa, Saptari, Udaipur, Chitwan, Nawalparasi East, Dang, Bardia and Kanchanpur. I have allocated Rs. 2.34 billion for this purpose.

Under the Integrated Energy and Irrigation Special Program, I have provided necessary funds to expand irrigation facilities in 600 hectares of arable land by lifting river banks and fields including Sunkoshi, Trishuli, Kaligandaki, Raprati, Bheri, Karnali and Chamelia.

Ponds will be constructed with the participation of local level and community to provide irrigation facilities to the cultivable lands in the hilly areas. For this, financial transfer will be made to the local level.

River control and watershed protection

River control programs will be implemented for the protection of human settlements and protection of agricultural land and productive use at the local level by uplifting the land. Rs. 3.91 billion has been allocated for Kankai, Ratuwa, Kamala, Lalbakaiya, Wanganga, West Rapti, Karnali and Mahakali river control programs.

I have allocated budget to protect Bhadrapur of Jhapa, Weni of Myagdi, Dunai of Dolpa, Chainpur of Bajhang and Khalanga Bazaar of Darchula from river erosion. I have allocated budget for the construction of 115 km structure by continuing the river control program. Innovative and bio-engineering technology will be used in river control and landslide management.

84 km embankment will be constructed within three years to protect Gaighat Bazaar and other settlements and agricultural lands of Udayapur from the erosion of Triyuga river.

I have allocated budget for the feasibility study for the construction of canal by connecting Koshi, Gandaki, Karnali and their tributary river systems in the Bhawar area of ​​Chure Hills from Jhapa to Kanchanpur. I hope that this will help in managing the irrigation system of the Terai, continuing the water cycle, promoting voyage and tourism and solving the problems of flood, inundation and river erosion in the Terai.

For the protection of watershed and expansion of irrigation facilities, lakes protection and dam construction programs will be implemented. I have allocated Rs. 270 million for the operation of programs under Rupatal Integrated Development Project.

For the collection of weather information, weather radar will be connected in Palpa and Udayapur and X-wind radar in Kathmandu Valley. Weather channel will be operated in television.I have increased the budget for irrigation and river control sector to Rs. 31.86 billion.

Land arrangement

The government is committed to protecting public and government land. The search, identification and return of illegally occupied public, government and guthi lands will be expedited. The entire land acquired or purchased by the Government of Nepal, including Sadakar Sokorit Afwal, will be deducted and maintained in the name of the Government of Nepal within the next Fiscal Year.

With the cooperation of Government of Nepal and local level, at least 50 branches of Bhumi Bank will be established in each state and will be brought into operation within the coming Fiscal Year. Arrangements will be made to make land available on lease to individuals, groups or institutions for commercial farming and processing of agricultural produce on private, government, public and river uplift lands which are not in use.

For scientific classification of land and maximum utilization, land use plans based on land use information maps will be formulated at all local levels. I have made arrangements to provide additional grants to the local level as an incentive to implement the plan.

A digital copy of all land related records will be made available through the land records information management system.
Within the next Fiscal Year, the service system related to electronic map, field book and plot register will be implemented electronically in all the districts.

Continuing the use of state-of-the-art lider technology for geo-information collection, survey and measurement mapping, I have allocated Rs. Measurement mapping of all parts of the country will be completed within the next three years.

Cooperatives and Poverty Alleviation

Cooperative sector will be developed as an important pillar of the economy. Financial access will be expanded, social and economic empowerment and cooperatives will be mobilized in productive sectors. Entrepreneurship development programs will be conducted by including landless, squatters, dalits and backward classes and communities in cooperatives.

Cooperatives will be encouraged for the promotion of domestic and small scale industries based on local raw materials, storage, processing, packaging and marketing of local products. I have made arrangements to provide concessional loans to cooperatives to develop value chain by processing agricultural and livestock products.
Assistance will be provided to the cooperatives to establish agricultural market center in partnership with the local level. Conditional grant will be provided to the local level for repairing and operating the warehouses of the common cooperatives for storing agricultural products.

Through the cooperatives, I have made arrangements to provide subsidy for the purchase of food grains, pulses, vegetables, fruits, tea, cardamom, coffee seeds, vision, equipment and tools required for cultivation. Based on technical assistance and rewards for capacity building and institutional strengthening of cooperatives to expand employment opportunities. Grants will be provided. I have allocated budget for strengthening the cooperative sector.

Next year, the task of distributing state facility identity cards to the poor households of all the districts will be completed. All the services and facilities targeted at the poor provided by the government will be linked with the same identity card. I have given continuity to the global program with the poor.

I have abolished the Poverty Alleviation Fund. About 32 thousand community groups in the fund will be converted into cooperatives. The Rs. 19 billion recurring fund operated by the group will be used as the seed capital of the cooperatives and poverty alleviation program will be implemented.

For the Ministry of Land Management, Cooperatives and Poverty Alleviation, Rs. I have allocated Rs. 8.21 billion.

Forest development

Entrepreneurship will be promoted by linking forestry enterprises based on timber, non-timber and herbs with employment and economic gain. National standards of sustainable forest management will be implemented to increase the contribution of forest sector to the economic prosperity of the country.

Under the National Chure Conservation Program, 200 ponds will be constructed in Shivalik and Mahabharat areas and ground water will be replenished. Soil erosion control programs will be implemented in 164 river systems of Chure region. I have allocated Rs. 1.53 billion for this program.

Commercial production, processing, certification and marketing of high value plants and herbs including Bodhichitta, Rudraksha, Chiraito, Shrikhand, Panchaonle etc., which have potential for export, will be encouraged. Nurseries of plants and herbs will be developed on the basis of geographical potential. I have arranged.

Tourism infrastructure based on biodiversity and natural beauty will be developed in National Parks, Reserves, Protected Areas, Boundaries, Botanical Gardens and Community Forests. Nature based tourism infrastructure development programs will be conducted in Kanchanpur, Bardia, Chitwan, Nuwakot and Dolakha districts in collaboration with private sector.

Construction work of National Zoological Gardens under construction at Suryavinayak in Bhaktapur and Bhanubhakta Zoological Gardens at Tanahu will be completed.

In order to reduce the conflict between human and wildlife, the protected areas and the biological pathways, grasslands, boundaries, natural ponds and habitats in the national forests will be protected.

Private, cooperative and community organizations will be encouraged for commercial rearing of wild animals. Research center will be established for commercial cultivation of rare and valuable plants and herbs like Panchaule, Keshar and Yarsagumwa. Endangered species like tiger, unicorn, rhinoceros, elephant, musk, crocodile, carp and rare wildlife will be protected.

In order to expand employment and income generation opportunities, collective farming in the forest area and planting of agro-forest on private land will be encouraged.

Environmental protection

15 million trees will be planted in Chure and Terai-Madhesh areas. Fruit saplings will be developed along the roadsides, residential areas and open areas of urban areas. Nepal Army, Nepal Police, Armed Police will also be mobilized for tree planting and protection.

To reduce the environmental pollution caused by plastics, the production, import, sale, distribution and use of plastics thinner than 40 microns has been completely banned from next Shravan 1. I have arranged.

If the industry producing plastic bags or seats thinner than forty microns replaces the parts of the old machine and makes a new connection, additional investment will be made and capital grant will be provided.

The use of electric vehicles will be encouraged to control the adverse effects of environmental pollution on human health and to promote clean and eco-friendly development.

For this, a working group including experts will be formed to give suggestions regarding the policies, exemptions and facilities and infrastructure development to be adopted. I have made an arrangement to give renewal fee for road construction and maintenance fee exemption for 5 years if the vehicles operated from petroleum products are converted into electric vehicles.

I have allocated budget to run carbon emissions reduction program in 13 districts of Terai-Madhesh including Rautahat, Wara, Parsa, Chitwan, Banke, Bardiya, Kailali and Kanchanpur. The capacity of the local community will be enhanced to minimize the adverse effects of climate change.

Air quality measurement centers will be established in Ilam, Rajbiraj, Jomsom, Dipayal and other places. Regional standards related to air, noise and water pollution will be updated and implemented.

For the Ministry of Forest and Environment, Rs. I have allocated Rs. 14.13 billion.

Tourism promotion

Nepal will be developed as an attractive, scenic and safe tourist destination by utilizing the unique natural beauty, abundant biodiversity and incomparable socio-cultural diversity.

In order to diversify and expand the tourism sector, integrated tourism infrastructure development program will be implemented in collaboration with the private sector. Tourism infrastructure will be constructed in Sandakpur, Dhanushadham, Indrasarovar, Panchase, Niglihawa, Kupinde Daha, Rabadagaun and other places. I have given continuity to the reconstruction work of Ani Gumwa and Kagweni in Muktinath area.

A trekking route, hiking destination and cycling trail will be constructed at possible places near Kathmandu Valley.

An environment friendly bicycle circuit will be constructed around Fewatal. A detailed project report will be prepared for the construction of Himalayan footpath from Darchula to Taplejung. Land will be made available on lease to the private sector to promote tourism by constructing hotels, motels, resorts and other cool places in the potential places of Chure and Mahabharat ranges.

I have allocated budget to develop Rara, She-Foksundo Lake, Khaptad and other places of natural importance as attractive tourist destinations.
Walking routes will be constructed in Lower Dolpa, Simikot of Humla, Ruby Valley of Dhading, Rolling of Dolakha, Olangchunggola of Taplejung and other areas.

An integrated tourism information system including GPS tracking will be implemented for the safety and rescue of tourists going for trekking and mountaineering.

Important lakes including Maipokhari of Ilam, Barju Lake of Sunsari, Jagdishpur Lake of Kapilvastu, Satyavati Lake of Palpa, Sharpu Lake of Rukum, Behedaba Baba Lake of Kailali will be developed as tourist destinations by conserving and beautifying them.

Adventure tourism including mountaineering, bungee jumping, rock climbing, rafting, paragliding, zipline, kayaking will be promoted. National and international investors will be attracted to invest in the field of adventure tourism.

Agri-tourism, eco-tourism, Himalayan yoga tourism, high altitude sports tourism, educational tourism and conference tourism will be promoted with the coordination and cooperation of local level and private sector.I have allocated Rs. 590 million to continue the tourism infrastructure development program operated in 216 places in cost sharing of state and local level.

Historic forts including Simraungadh, Makwanpurgadhi, Sindhuligadhi and Jitgadhi will be protected and developed. A detailed study will be done to build a circuit in the religious-cultural and wetland areas.

I have allocated Rs. 27.47 billion to the Ministry of Culture, Tourism and Civil Aviation.

Industrial development and investment promotion

Nepal will be developed as an attractive and safe investment destination by creating conducive business environment to increase the contribution of industry sector in the national economy. The process of industrialization will be intensified by developing investment friendly industry administration, favorable behavior, protected tax system, good labor relations and modern infrastructure.

Made in Nepal and Make in Nepal campaigns will be conducted in collaboration with the private sector for the promotion of mass production, marketing, use and export of indigenous goods. Exports will be promoted by becoming self-reliant in the production of cement, medicine, iron rods, furniture and shoes.
Production based on local raw materials and labor will be increased by protecting domestic, small and medium enterprises. Arrangements will be made to organize virtual trade-shows using internet to market the products of such industries.

Sheep and goat rearing will be encouraged through wool mission program at 33 local levels in 22 districts of high mountainous and hilly areas. I have made arrangements to set up wool processing factories in the Himalayan districts of Gandaki and Karnali. Exports will be encouraged by operating meat industry in the Himalayan region.
Companies of the world’s top 10 brands of electric vehicle manufacturing and assembling will be attracted to set up the industry. In addition to tax relief, the government will provide the required land to such companies on free lease.

Infrastructure construction of industrial zone will be completed in Damak of Jhapa, Mayurdhap of Makwanpur, Motipur of Rupandehi, Nauwasta of Banke, Lamki of Kailali and Daiji of Kanchanpur within the next two years. Feasibility study will be done to establish industrial zone in Murtiya of Sarlahi, Chintutar of Tanahu, Laxmipur of Dang and Chaurase of Surkhet. The role and participation of the private sector in the management and operation of the industrial sector will be increased. International investors will be attracted in the construction and management of the infrastructure of the industrial sector.

Special Economic Zone infrastructure construction work will be completed and brought into operation in Panchkhal of Kavrepalanchok. Feasibility study will be done to establish special economic zone in Amarduwa of Sunsari, Haraiya of Kailali and Rajapur of Bardiya. I have allocated Rs. 52 crore for the infrastructure development of the special economic zone.

I have allocated Rs. 920 million to continue the industrial village construction work started at the local level.
Construction work of SAARC Handicraft Building at Tripureshwor, Kathmandu will be completed this year. An international exhibition center will be constructed in Kathmandu Valley in partnership with the Federation of Nepal Export Entrepreneurs. The exhibition site operated in Biratnagar will be upgraded.

The private sector will be facilitated to establish and operate industries of comparative advantage. The investment return process of industries established with foreign investment will be simplified. Arrangement will be made to provide all the services related to the industry electronically from a single point service center.

The opportunities brought by the fourth generation industrial revolution including digital and artificial intelligence technology will be used. Laws related to e-commerce will be formulated.

Additional concessions and incentives will be given to the industries to be established in the industrial zone, special economic zone and industrial village. In order to establish industry in the industrial sector, land lease will be made available at minimum price and lease period will be extended. While establishing industries in the industrial zone and special economic zone, provision will be made for non-environmental sensitive industries other than environmental impact assessment.

Arrangement will be made to operate the industries established outside the industrial zone by transferring them to the special economic zone. Arrangements will be made for the industries to be established in the Special Economic Zone to sell 40 percent of the products in the domestic market for 3 years after the commencement of production.
In line with the objective of creating a pollution free and clean capital, the industries operating in the Kathmandu Valley will be relocated to Mayurdhap Industrial Area of ​​Makwanpur

I have made arrangements to provide free land to the relocated industry for 10 years and levy only 1 percent customs duty on mill machinery and its parts imported by the industry. The electricity demand fee of those industries will be fully exempted for five years.

Bhagat Sarvajit Silp Upliftment and Development Program will be conducted in all the states to make the traditional skills, arts and professions of the Dalit community professional by conserving, promoting and modernizing them and to expand the scope of employment opportunities. Capital grants will be provided for the promotion of skill development market by declaring special pocket areas according to profession, production and location. Separate structure will be constructed for the implementation of this program. I have allocated necessary amount for this.
If the investor builds the access road and transmission line required for the star hotel, cement and iron industries, 75 percent of the construction cost will be reimbursed.

Exploration, survey and excavation of iron, precious metals, precious stones, petroleum products and other minerals will be started. Geological mapping of minerals and minerals I have allocated necessary amount to start the work related to the survey.
Commercial production will be started from Dhauwadi iron mine next year. Petroleum exploration in Chupra of Dailekh will be completed within two years. Necessary arrangements will be made for the protection, promotion and use of radioactive material including uranium in Lomanthang of Mustang.

Excavation will be started by studying the feasibility of phosphrite in Baitadi, magnesite in Udayapur, copper mine in Okhaldhunga mine and Tanahu Aanukhaireni, quartz in Jajarkot and precious stones in Rubivali of Dhading. In collaboration with the private sector, precious, semi-precious stone laboratories and processing centers will be established in Kathmandu and Surkhet.

The micro enterprise development program will be expanded to alleviate poverty at the local level by increasing the institutional capacity of the local level.
I have allocated Rs. 2.77 billion for the construction of industrial infrastructure.

Commerce

Additional facilities will be provided to the private sector for processing, packaging and branding of cardamom, tea, coffee, ginger, herbs and other environmentally friendly and original products of Nepal with internationally recognized quality certification and export.

Foreign investment will be attracted in export oriented industries. The private sector will be encouraged to export quality drinking water of the Himalayan region to the Gulf and other countries through branding. If foreign investors produce in Nepal and export 100% to their own country, such industries will be given additional exemption in income tax.

To increase the export of goods produced by small and medium enterprises, the facility of bonded ware house will be provided to the private sector for the establishment and operation of export houses.

Trade deficit will be minimized by extracting mineral stones, ballast and sand on the basis of environmental impact assessment. I have made an arrangement to give exemption in import duty for construction of ropeway from industry to export point for transportation of exported mineral construction materials.
Arrangements will be made to provide additional subsidy to the exporters who export goods of greater quantity and value than the previous Fiscal Year. Export subsidy will be extended to the producer level.

Electricity consumption will be increased to reduce trade deficit by replacing the import of petroleum products. Arrangements will be made to use indigenous cement and iron in the construction of roads with water flow area, sloping terrain and high maintenance.

Safeguard, anti-dumping and countervailing laws will be implemented for the protection of indigenous industries.

International market of collective trademarks including Changrapashmina, Felt, Nepal Herbs, Everest Wig Cardamom, Nepal Tea, Himalayan Naples Carpet, Nepal Coffee will be promoted. I have made an arrangement for the Government of Nepal to bear the collective trademark renewal fee. I have made an arrangement to waive the fee for organic certification.

Trade and trade agreements with neighboring countries will be reviewed. Trade with third countries will be expanded by making maximum use of transit facilities provided by friendly countries India and China.

Business infrastructure

Construction of inter-country trade infrastructure will be expedited. Construction of integrated check post in Nepalgunj will be completed and brought into operation next year. Construction work of integrated check post of Bhairahawa will be started soon.

The integrated check post on the Nepal-India border will be connected with the railway. Arrangement has been made to construct a parking yard for 2,000 cargo vehicles at Velahiya border point.

Construction of dry port at Timure in Rasuwa will be completed next year. Construction of Olangchungola of Taplejung, Kimathanka of Sankhuwasabha, Korola of Mustang, Yari of Humla and Dodhara-Chandani dry port of Rakanchanpur will be started after completing the pre-preparation

Container Freight Station under construction at Chobhar of Kathmandu will be brought into operation from the next Fiscal Year.

Supply management

National quality policy will be formulated. Supply system will be made clean and competitive by eliminating market monopoly and price matching.

Market monitoring will be made regular and effective in collaboration with the agencies involved in market monitoring and organizations working for the benefit of the consumers.
I have allocated Rs. 760 million to continue the subsidy provided for transportation of food grains and salt in remote areas including Karnali.

Storage capacity will be increased to meet the demand of petroleum products for a minimum of three months. The work of laying petroleum pipeline from Panitanki to Charali via Kankadvitta and from Amalekhganj to Lothar will be started and brought into operation within three years.

In order to make iodized salt supply available at affordable, quality and low prices, salt production and distribution will be made competitive with the participation of private sector.
For the Ministry of Industry, Commerce and Supplies, Rs. 13.58 billion.

Respected sisters and brothers,

Now I present the programs and allocations for the social sector including education and drinking water.

Quality education

The basis of human capital formation will be to make education quality, vital, vocational and technology friendly and to ensure access of all citizens to education. Disaster sensitive and disability friendly educational infrastructure will be constructed. Results oriented educational evaluation system will be adopted. Grants will be provided on the basis of educational results to enhance the educational quality of community schools.

The President’s Educational Reform Program will focus on building the infrastructure of the education sector. Within three years, buildings and infrastructure suitable for alternative learning methods including classrooms, laboratories, libraries, drinking water and toilets will be constructed at all levels of community schools and campuses.

I am confident that the implementation of this program will bring a revolutionary change in the construction of educational infrastructure, produce skilled manpower suitable for the country and make a significant contribution to socio-economic transformation including social justice. I have allocated Rs. 10 billion for the President’s educational reform program.

Compulsory and free basic education will be ensured in the coming academic session by achieving 100% enrollment at the basic level. Traditional education methods like Gurukul, Madarsar Gumwa will be included in the formal education system.

A minimum monthly salary of Rs. 15,000 / – will be provided to the teachers and school staff of the Primary Child Development Center as determined by the Government of Nepal. I have increased the current monthly salary provided by the Government of Nepal to Rs. 8,000. Arrangements will be made for the local level to bear the amount that falls below the minimum wage. I have allocated Rs. 5.55 billion for this.

In order to improve the nutritional status of the children, I have allocated Rs. 8.73 billion to run lunch program for all the children up to class 5 of the public schools to solve the problem of dropping out of school without completing the academic session.

Teacher posts will be matched on the basis of teacher-student ratio. The increase in the number of posts at the primary level will be converted to the number of posts at the secondary level. I have allocated Rs. 2.66 billion for additional grants to provide teachers of science, mathematics and English subjects in proportion to the number of students in secondary level schools.

With the objective of providing free broadband internet service to all community schools within the next two years, the service will be extended to 60 percent schools across the country by the end of the next Fiscal Year.
Alternative teaching-learning action plan will be implemented effectively. I have made arrangements for the development of learning portal and operation of educational channel through Nepal Television targeting the students who could not go to school. I have allocated Rs. 1.20 billion for the implementation of Alternative Teaching and Learning Action Plan.

Color textbooks will be printed and distributed free of cost to the children studying up to class nine in public schools before the start of the academic term. I have allocated Rs. 4.79 billion to distribute free textbooks and free sanitary pads to the students up to class 12.

Secondary level residential schools will be run in 13 Himalayan districts including Gita Plejung, Rasuwa, Mustang, Mugu and Darchula for the children of endangered minorities, endangered, marginalized communities and deprived classes.

Budget has been allocated for scholarships to protect the right to education of socio-economically marginalized communities including Chepang, Raute, Badi, Majhi, Musahar, persons with disabilities, families of martyrs, conflict victims, families of victims of COVID-19 and HIV positive children. I am I have made arrangements to provide scholarships for Dalit, Muslim women and free Kamalari women students in all subjects up to higher education and to ensure free education.

Arrangements will be made for the visually impaired children to get education with the help of modern technology including Braille textbooks. One special school will be set up in each state with residential facilities for the students with intellectual disabilities.

Health awareness will be increased in schools by adopting one school-one health worker policy. At the beginning of each academic session, it will be compulsory for all students to undergo basic health examination including eye and ear examination.

Secondary level students will be encouraged to participate in extracurricular activities including daily reading, Nepal Scout, Junior Red Cross Circle, sports and music.

University education will be made research based. I have allocated budget to develop SEDA, SINAS, SERIDERRICAST as the leading research institutes under Tribhuvan University.

Seventy percent technical and thirty percent general education concept will be implemented. An engineering college will be established in Jaleshwar, Mahottari. Organic campuses of Agriculture and Forest University will be expanded.
Technical schools will be run at all local levels to prepare skilled manpower based on local characteristics and needs. Affiliation of Technical Education and Vocational Training Council and related local levelConditional grants will be provided for the establishment of technical schools under the management of the Council.

Madan Bhandari Technical University will be brought into operation within the next two years. I have allocated budget to start the construction of infrastructure of the university next year.
I have allocated budget to start the construction of infrastructure to bring Yogamaya Ayurvedic University into operation within two years.

The University Grants Commission will be developed into a competent body capable of conducting national aptitude test, setting criteria and monitoring and regulating the university. Grants provided to the University will be made based on performance. I have increased the grant disbursed through the University Grants Commission to Rs. 18.34 billion.

I have allocated funds for the construction, operation and educational activities of the proposed Nepal University.
Next year, a medical college under construction will be brought into operation in Geta, Far-Western Province. Construction work will be started by preparing detailed project report of Butwal Medical College. Land acquisition and detailed project report will be prepared for the establishment of medical colleges in Bardibas of Province No. 2 and Surkhet of Karnali Province.

Funds will be provided to strengthen the History Research Board, which is working to establish authenticity in geographical, political, cultural and social aspects by studying, exploring and researching history. A UNESCO village will be constructed in Jagdol of Kathmandu.

Science and technology

Scientific consciousness will be enhanced by linking technology and innovation with science and production in the society. Science, Technology and Innovation Council will be formed to conduct the work related to science and technology in an integrated and coordinated manner.

Madan Bhandari University of Science and Technology, established to produce world class manpower in the field of science and technology, will be brought into operation next year.

Infrastructure construction work of engineering faculty will be completed in Chitlang of Makwanpur. Construction work will be started by preparing detailed project report of infrastructure construction in Panchkhal of Kavre. I have allocated Rs. 1.55 billion for this.

Nepal Academy of Science and Technology will be restructured. VP Koirala Memorial Science Museum will be developed in VP Koirala National Science Park.
I have allocated Rs. 180.04 billion to the Ministry of Education, Science and Technology.

Culture

The protection of traditional culture and archeological heritage will be promoted and presented to the world as a soft power. The remaining work of Lumbini Development Master Plan will be completed within two years.

A comprehensive Lumbini Development Master Plan including Lumbini, Tilaurakot, Ramgram and Devdaha areas will be prepared by renowned international level planners. I have allocated Rs. 1.5 billion for this.

Comprehensive Pashupati Area Development Master Plan will be formulated and implemented. I have allocated Rs. 350 million for the construction of infrastructure including incineration of Pashupatinath temple.

The process of listing Janaki Mandir and Tilaurakot in the World Heritage List will be taken forward. In order to develop Janakpur as a religious, cultural and tourist destination, a religious conference with Ashtabakra Shastrartha will be organized every year. I have allocated budget for the construction of Ram temple in Ayodhyapuri of Chitwan.

I have allocated budget for the protection and development of religious areas including Virat Kshetra, Ramjanki Temple, Devghat, Bhairavasthan, Ruru and Khaptad.
Tripurasundari of Baitadi, Badimalika of Bajura, Chhayanath of Humla, Chandannath of Jumla, Kankrevihar of Surkhet, Swargadwari of Pyuthan, Muktinath of Mustang, Gadhimai of Bara, Chhitnamastha of Saptari, .

The National Cultural Museum under construction in Kirtipur, Kathmandu will be completed within two years reflecting the way of life, customs, art, culture and traditions of different castes and languages. Provincial museums will be established and developed in each province with the coordination and cooperation of the state government.

Feasibility study will be carried out for the construction of Pragya Village in Kathmandu Valley to develop the infrastructure of Nepal Pragya Pratisthan, Nepal Music and Drama Pratisthan, Nepal Lalitakala Pragya Pratisthan and Bal Pragya Pratisthan.

Youth and sports

The capacity of the youth will be enhanced and they will be made patriotic, disciplined and enterprising. Youth targeted programs will be conducted for the meaningful participation of the youth in the economic, social and cultural transformation of the country.

An additional 12 thousand youths will be made self-employed next year by providing loan facility with technical and vocational skills through Youth and Small Entrepreneur Self-Employment Fund. I have made an arrangement to provide 50 percent subsidy of the loan security premium disbursed from the Youth Self-Employment Fund to the youth and small entrepreneurs.

Through the National Youth Council, the youth force will be organized and mobilized for social work including disaster risk reduction, environment protection, relief, rescue and raising public awareness. A leading role of youth will be established in the process of economic, social and cultural transformation. Youth Innovation Centers will be established in all the states under the leadership of the National Youth Council.

Students in the age group of five to twenty five years will be included in the scouts and will be activated in nation building with discipline, self-reliance and volunteerism. Next year, Nepal Scouts will be expanded to 13 thousand schools.

By developing and expanding sports from the community level and preparing physically and mentally healthy, capable and disciplined citizens, I have made an arrangement to develop sports infrastructure, organize sports competitions, conduct sports training and provide incentives to talented players to enhance the respect of the nation in the international arena.

Construction of international level Madan Bhandari Stadium in Damak, Jhapa will be started within two years.

I have allocated necessary funds for the construction of cricket grounds in Vaidyanathpur of Morang, Mulpani of Kathmandu, Bhairahawa of Rupandehi, Lamahi of Dang, Nepalgunj of Banke and Mahendranagar of Kanchanpur. Construction of Pokhara Stadium will be completed next year.

I have made an arrangement to provide concessional rate loan to the players who have retired from active sports life to run their business.

Construction of provincial stadiums in Dhangadhi, Birendranagar, Nepalgunj, Birgunj and Janakpur Dhamarithari will be expedited. Sports infrastructure will be constructed at all local levels. In the coming Fiscal Year, I have allocated funds for the construction of 168 local level Khelgram villages.

I have provided necessary funds for the construction of high altitude sports centers in Solukhumbu, Sindhupalchok, Manang and Mustangar Jumla.

Ninth National Games will be organized in the coming Fiscal Year. Possible sports will be identified and encouraged to win medals at the international level. Nepal’s participation in international competitions will be increased.

Feasibility study of international level sports school will be done to develop Nepal as an excellent destination for sports tourism.
For the Ministry of Youth and Sports, Rs. I have allocated Rs. 2.74 billion.

Clean drinking water for all

Basic drinking water and sanitation services will be provided to all the citizens next year. Access to quality drinking water services will be expanded by implementing the concept of one house one stream. The capacity of the Consumer Committee will be enhanced for sustainable management of drinking water.

Under the second phase of Melamchi Drinking Water Project, construction of tunnels and other infrastructures will be started in the coming Fiscal Year to add 340 million liters of drinking water daily from Larke and Yangri rivers to the system. The construction work of this project will be completed within three years. I have allocated Rs. 3.51 billion for Melamchi Drinking Water Project.

Significant improvement will be made in the drinking water distribution system of Kathmandu Valley. In the first phase, Melamchi water will be distributed to 110,000 households by adding 113 kilometers of new distribution lines from the four wholesale distribution systems under construction.

In the second phase, the pipeline will be extended to Kirtipur, PepsiCola, Jorpati, Bhaktapur and other areas outside the ring road. I have allocated Rs. 4.79 billion for the improvement of distribution system.

The project will be developed to supply drinking water to the big cities of Terai-Madhesh and Inner Madhes from the river diversion project under construction. In the first phase, feasibility study of drinking water supply from Sunkoshi-Marin river diversion project in Siraha, Dhanusha, Mahottari, Sarlahi, Rautahat, Wara and Parsa districts and from Bheri-Babai diversion project in Banke Rabardia district will be done.

I have abolished the provision that consumers should deposit 1 percent of the cost in advance while starting the construction of drinking water project targeting rural areas. I have made an arrangement to waive the electricity tariff and demand fee used in the drinking water project run by the consumer group.

Water recharge program will be implemented to maintain the drinking water level at minimum level. Sustainable measures will be taken to recharge the deepening water resources in the Terai-Madhesh. Conventional water sources including stone fountains, dug wells and ponds will be conserved in 30 places of Kathmandu Valley.

I have allocated budget for the operation of drinking water project under construction and Terai-Madhesh centered arsenic free drinking water project in collaboration with the state and local level.

In the coming year, Rs.I have allocated Rs. 2.68 billion for the completion of Pathibhara, Sankhuwasabha, Chainpur, Mangadh of Morang, Okhaldhunga Bazaar of Okhaldhunga, Harnamadi of Makwanpur, Vairghari of Syangja and Patan Drinking Water Project of Baitadi next year.

Water distribution will be started from Pokhara and Nepalgunj Drinking Water Project in the coming Fiscal Year. I have allocated necessary amount for the completion of Jhumsa Khola Drinking Water Project.

I have allocated Rs. 3.29 billion for the regular maintenance of drinking water project system operated at federal, state and local level.
Kodku, Dhovighat and Sallaghari sewage treatment plants will be operated in Kathmandu Valley. Construction of sewage treatment plants will be completed in Damak, Janakpur, Birgunj, Nepalgunj and eight other cities with high population density.

Garbage treatment and sewerage construction and sanitation programs will be conducted in partnership with the state and local levels. Public toilets will be constructed in all the wards around the highway, public places and urban areas.
I have allocated Rs. 43.54 billion.

Respected sisters and brothers, I now present the programs and allocations for the physical infrastructure sector including roads, hydropower, housing:

Road infrastructure development

Quality transport infrastructure will be developed to facilitate movement, interconnect between markets and strengthen product interconnection. Roads, tunnels, high bridges and flyovers will be constructed to reduce travel time between major cities up to a maximum of two hours. GIS mapping of all roads I have arranged.

The East-West Highway will be widened to four lanes with safety measures. The expansion work of Kanchanpur-Kamala, Kamala-Dhalkewar-Pathlaiya and Narayangarh-Butwal sections will be expedited.

Construction work will be started by completing detailed design of Kakadvitta-Inaruwa, Pathlaiya-Narayangadh, Butwal-Kohalpur and Kohalpur-Vanwasa sections. Service lanes, underpasses and flyovers will be constructed in the densely populated areas of this highway, tunnels in the Chure area and wildlife tunnels in the forest areas. I have allocated Rs. 15.34 billion for this.

Pushpalal Highway will be extended to Charlene and will be constructed as the backbone of the development of mid-hill region. In order to reduce the distance of highways, feasibility study will be done and redrawing, use of tunnel technology and construction of high bridges will be done. I have allocated Rs. 8 billion 130 million for this.

Construction work of Chatara-Hetauda section of Madan Bhandari Highway will be completed in the coming Fiscal Year. Construction work of Shantinagar-Dharan and Bhedawari-Dhuliavit, Surkhet sections will be started. The construction work will be expedited by preparing the outline and detailed project report of the remaining section. I have allocated Rs. 3.20 billion for this.

The construction work of Postal Highway will be completed in the coming Fiscal Year. Construction of bridges on Ratuwa, Viring, Kankai, Kamala, Bagmati, Balan, Danda and Rakandra rivers will be completed. Construction will be completed by rearranging the sections in the National Parks of Chitwan and Makwanpur districts. I have allocated Rs. 6.39 billion for the postal highway.

Construction of Kathmandu-Terai Madhes Expressway will be expedited. Construction of tunnel and elevated bridge on the expressway will be started next year. I have allocated Rs. 8.15 billion for the construction of Kathmandu-Terai Expressway.
I have allocated Rs. 7 billion for upgrading Siddhartha Highway and Kohalpur-Surkhet Highway to Dedicated Double Lane.

I have allocated Rs. 7.27 billion for upgrading Nagdhunga-Muglin section of Prithvi Highway and widening Aanukhaireni-Pokhara section in four lanes.

I have allocated Rs. 2.66 billion to widen the remaining section of the road connecting the southern border from the East-West Highway in 18 districts of Terai-Madhesh through the district headquarters to the southern border in four lanes.

To upgrade and expand Dhulikhel-Dolalghat-Kodari section of Arani Highway, Rs. I have allocated Rs. 1.13 billion. Galchi-Syafruvenshi-Rasuwagadhi and Kathmandu-Bidur roads will be upgraded to dedicated double lanes.

Construction of North-South Road Corridor will be expedited. To increase Rs. I have allocated Rs. 6.5 billion.

Surkhet-Khulalu section of Karnali Highway will be made two lane. Nagma-Gamgadhi road will be upgraded. I have allocated Rs. 1.20 billion for this. Simikot of Humla district will be connected to the national highway network in the coming fiscal year.

The Jajarkot-Dunai section of Bheri Road Corridor will be upgraded. The track opening of Dunai-Tinje Dho section will be started next Fiscal Year. 61 crore has been allocated.

Construction of Bramhadevmandi-Jhulaghat-Darchulakhalanga-Tinker road of Mahakali corridor will be expedited. 1 billion 30 million has been allocated.

Construction of 300 bridges will be completed next year. Construction of four lane bridge on Mahakali river connecting Indian border through Dodhara-Chandni will be completed. Rs. 11 billion 100 million has been allocated.

10 potential road bridges including Koshi, Narayani, Rapti of East-West Highway will be replaced by attractive signature bridges. Renowned international consultants will be involved in designing these bridges and preparing detailed project reports.

A study working group including experts will be formed to establish the National Highways Authority for determining the standards of roads and bridges within the jurisdiction of the federal government, drawing, design, construction, maintenance, use of alternative equipment for possible investment, mobilization of financial resources and archiving.

Under the second phase of Kathmandu Valley Ring Road Expansion, construction of Maharanganj section from Kalanki will be started and completed within two years.

Construction work will be started by preparing project report after detailed feasibility study of Maharajgunj-Dhovikhola-Chavahil-Tilganga section. Flyover construction work will be started at Gwarko, Satdovato and Ekantakuna Chowk of Chakrapath. I have allocated Rs. I have allocated Rs. 2.64 billion.

Public transport

The transport system will be made safe, reliable and technological. Electric driver’s license will be issued. Embossed number with radio frequency identification will be distributed in all the vehicles registered in the country from all the states.

GPS will be connected to cargo and other vehicles. E-ticketing will be implemented in public transport. Public transport operation will be made systematic by forming Kathmandu Valley Transport Development Authority.

Facilitated and quality service will be provided to the passengers by promoting competition in the operation of transport services. Arrangements will be made to transfer the real estate owned by the former Transport Entrepreneurs Committee to the converted transport companies.

Further incentives to operate large capacity electric buses in partnership with state and local level in major urban areas of the country including Kathmandu Valley, Birtamod-Bhadrapur, Itahari-Biratnagar, Dhalkewar-Janakpur, Pokhara-Damauli, Butwal-Bhairahawa-Lumbini, Kohalpur-Nepalgunj, Attaria-Dhangadhi. I have made arrangements to give grants.

Arrangements will be made to operate at least 100 electric buses in Kathmandu in the coming Fiscal Year through shared transport.

In order to increase the use of electric vehicles, 500 charging stations, terminal buildings and other infrastructures will be constructed in different places of the country including Kathmandu Valley with the participation of private sector in the coming Fiscal Year.

Tunnel

The country has entered the era of tunnels with the commencement of tunnel construction on Nagdhunga of Prithvi Highway. The modern tunnel is becoming a reality for us instead of a dream.

The construction of tunnel from Nagdhunga of Kathmandu to Sisnekhola of Dhading will be expedited and brought into operation within two years. I have allocated Rs. 9.85 billion for this project.

Next year, I have allocated budget to start the construction of Siddhavawa-Dobhankhand section of Siddhartha Highway, Lamavgar-Lapcher Dharan-Dhankuta road section of Dolakha and Dharan-Leuti tunnel road.

I have allocated Rs. 1.80 billion for the construction of tunnel in Tinkune-Jadivuti section to manage the traffic congestion of Kathmandu Koteshwar.

Construction work of Tokha-Chhare-Gurjubhajyang, Vetravati-Syafruveshi, Khurkot-Chiawari and Thankot-Chitlang tunnels will be started by preparing detailed project report in the coming Fiscal Year.

Majhimtar-Shaktikhor of Prithvi Highway, Hemja-Nayapul of Pokhara Baglung Highway, Dumling-Wangsing of Chepang Highway, Dumkiwas-Wardghat of East-West Highway, Babai-Chinchu of Kohalpur-Surkhet Highway, Kapase-Siyakot of Surkhet-Dailekh Road, Palpas-Siyakot, Palpa Feasibility study and detailed project report will be prepared for the construction of tunnel in Ravipinagar-Khutiya-Dipayal section.

Railroad

A state-of-the-art railway transport network will be developed in the country. Rail service will be operated in Jayanagar-Janakpur-Kurta-Vijalpura and Jogwani-Biratnagar sections next year.

Feasibility study will be done for the operation of metro rail and urban cable car in Kathmandu Valley by appointing an international consultant.

Construction of track belt of Vardibas-Nijgadh section under East-West Railway will be completed. Construction work will be started by completing land acquisition and other preparatory works of Kakadvita-Inaruwa section. A detailed project report of Nijgadh-Amarapuri section will be prepared. The construction work of the remaining section will be carried out gradually by making financial arrangements.

A detailed project report of Raxaul-Kathmandu and Kerung-Kadmandu-Pokhara railways will be prepared in the coming Fiscal Year. I have allocated Rs. 10 billion 30 million for railways.

Water transport

National and international access will be enhanced by operating water transport in the major river systems of the country. The Triveni-Narayangadh-Devghat-Dasdhunga section of Narayani river will be named as Madan-dependent waterway.

From the next Fiscal Year, I have allocated necessary amount for the construction of infrastructure including terminal for the operation of ships on Koshi, Narayani and Karnali rivers. Obstacles in the waterway will be removed to operate water transport from Chatara of Koshi river to Bhojpur.

I have allocated necessary budget to study the feasibility of operating water transport from Dolalghat of Sunkoshi river to Arun Dobhan via Khurkot, from Bhalubang of Rapti river to Sikta, from Tamakoshi market of Tamakoshi river to Singati and from Devghat of Kaligandaki river to Ramdi.

I have allocated Rs. 163.37 billion for the Ministry of Physical Infrastructure and Transport.

Hydropower development

The present government has succeeded in bringing the country into the bright age by ending decades of long and tedious load shedding.

In the coming Fiscal Year, 228 from Tamakoshi project, 111 from Rasuwagadhi, 56 from Sanjen and Upper Sanjen, 37 from Trishuli 3V, 40 from Rahughat, 102 MW from Madhya Bhotekoshi and 1,055 from projects under construction from private sector. Additional MW of electricity will be connected to the national transmission system.

In the coming Fiscal Year, Bright Nepal Campaign will be completed by electrifying 43 more districts. I have made arrangements to provide free electricity connection to the houses of the destitute families. I have allocated Rs. 4 billion for rural and community electrification programs.

Energy efficiency will be enhanced by strengthening energy mixing, leakage control and distribution system. The policy of net metering and net payment will be implemented to sell the solar energy produced by the private sector to the Nepal Electricity Authority if it is saved and if it is not enough.

Bilateral and multilateral electricity trade agreements will be signed with potential countries to attract investment in hydropower generation.

The private sector will be attracted by constructing dams and power houses from separate promoters for the construction of reservoir based hydropower projects.

Arrangement will be made by the Nepal Electricity Authority to construct a reservoir and make the water stored in the reservoir available to the promoter company for construction and operation of power house and other ancillary structures for a fee. The rate of return will be increased by making more use of reservoir dam.

Construction work of 99 MW capacity Tamakoshi-5 will be started next year with the joint investment of Nepal Electricity Authority and Nepali people to increase public ownership in hydropower generation. Preliminary work will be completed by confirming the investment structure of Upper Arun, Phukot Karnali, Jagadulla and Ghunsa Khola Hydropower Projects.

Construction work will be started by completing the detailed feasibility study of Tamor Hydropower Project as soon as possible. Panchacheshwar Hydropower Project will be taken forward.
Arrangement will be made to give additional discount in tariff rate to the industrial customers who consume more electricity than the fixed unit and when the demand is less.

I have reduced the customs duty on electric stoves, refrigerators, microwave ovens, washing machines, dishwashers and other household appliances. Arrangements will be made to increase the capacity of domestic electricity meters and no additional charges will be levied in addition to the cost of materials used.

Construction structure of Budhigandaki, West Seti, Uttarganga and Nalsinggad hydropower projects will be determined and implemented by managing resources. Pay Karnali Hydropower Project will be constructed by making financial arrangements. Preparatory work will be taken forward for the implementation of Karnali Chisapani Hydropower Project.

Policy arrangements will be made to encourage the private sector in the construction of power transmission lines. If the promoter of the power project builds access road and transmission line to the project site, 75 percent of the cost will be reimbursed.

Arrangements will be made to complete the pre-preparation such as land acquisition, environmental impact assessment and right of way determination for the construction of hydropower and transmission line within the stipulated time. Arrangements will be made to give preference to the natural person who owns the land in the right of way of the transmission line as the person in the affected area when the primary company issues the primary shares.

I have made arrangements for free allotment of land in Right Offway.
I have allocated Rs. 4.7 billion to start the construction work of Butbal-Gorakhpur interstate transmission line and to complete the preparation work for construction of Kohalpur-Lucknow, Lamki-Wareli interstate transmission line.

I have allocated necessary funds for the construction of Khimti-Barhavise-Kathmandu and Hetauda-Dhalkewar-Inaruwa transmission lines, pre-construction of Butwal-Lamahi-Kohalpur-Attaria section and detailed feasibility study of Rasuwagadhi-Chilime-Ratomate section. I have allocated Rs. 37.61 billion for the construction of transmission line and substation.

Construction of Dudhkoshi Hydropower Project with a capacity of 635 MW will be started in the coming Fiscal Year. Reservoir Tanahu Hydropower Project construction work will be expedited. Preparatory work of semi-reservoir Upper Arun project will be completed. I have allocated Rs. 7.40 billion for this project.

Nepal Electricity Authority will be credited. In order to implement the new project, NEA will develop the capacity to mobilize corporate securities.

Alternative energy

I have allocated budget to provide electricity service to additional 50,000 households from micro and small hydropower, solar and wind energy in the areas where the national transmission line is not available.

I have made an arrangement to provide subsidy up to 90 percent of the project cost if the local level as well as community organizations produce and distribute solar and micro hydropower.

Arrangement will be made to purchase solar energy produced by the private sector from Nepal Electricity Authority and for that, transmission line will be extended to the production site. It is estimated that about 375 MW of solar power will be generated at 250 local levels. I have made an arrangement for the local level to get the fee for installing solar plant.

I have made arrangements to provide financial subsidy to the local level for the production of energy and organic manure by constructing large capacity biogas plants in public-private partnership. I have allocated Rs. 2.76 billion towards alternative energy.
I have allocated Rs. 121.97 billion for the Ministry of Energy, Water Resources and Irrigation.

Housing and urban development

Under the safe citizen housing program, thatched roofs of 168,000 houses will be replaced with zinc sheets. For this, I have increased the current grant amount by 50 percent to Rs. 75,000 per household. I have allocated Rs. 3.5 billion for this.

Houses under construction under the People’s Housing Program will be completed and handed over to 21,800 extremely destitute, endangered and marginalized families in 73 districts including Taplejung, Sarlahi, Makwanpur, Parbat, Pyuthan, Jumla and Dadeldhura this year. I have allocated Rs. 2.5 billion for this.

Integrated settlements will be developed in 86 places of 41 districts including Morang, Dhanusha, Sindhupalchok, Parbat, Arghakhanchi, Humla and Vaitadi in order to relocate the risky settlements and integrate the scattered settlements and provide basic infrastructure for development including drinking water, electricity and roads.

Rehabilitation program will be implemented for the families displaced by the disaster in Sindhupalchok, Gulmi, Baglung, Myagdi, Dang, Surkhet, Banke, Vardiya and other districts.

Sustainable, safe and technology friendly smart cities will be constructed in Gauriganj, Dhankuta, Maulapur, Chandrapur, Gundu, Kavre Valley, Walling, Lumbini Cultural, Tulsipur, Dullu, Amargadhi and Bhimdatta municipalities.

Under the Intensive Urban Development Program, the district headquarters of Terai-Madhesh are Mahendranagar, Dhangadhi, Gulariya, Nepalgunj, Toulihawa, Siddharthnagar, Parasi, Birgunj, Kalaiya, Gaur, Malangwa, Jaleshwar, Janakpurdham, Siraha, Rajbiraj, Inaruwa, Biratnagar, Bhadrapur and rapidly urbanizing municipalities. Urban infrastructure projects in the areas of road, sewerage, drinking water, amusement park, bus park, education and health will be implemented. I have allocated Rs. 10.71 billion for this.

Municipalities including Birtamod-Chandragadhi, Dharan-Itahari, Janakpur-Dhalkewar, Butwal-Bhairahawa, Kohalpur-Nepalgunj, Attaria-Dhangadhi will be developed into mega cities. Consultation services of international urban planners will be taken to formulate the master plan of megacity.

A model of streetscape will be designed and implemented for the enhancement of urban beauty. I have allocated budget for the construction of cultural footpath from Basantapur Durbar area to Swayambhunath listed in the World Heritage List.

Utility corridors will be constructed in major urban areas including the capital to underground structures such as electricity, telephone, drinking water and optical fiber. Electricity wires will be laid underground in big cities including Kathmandu, Bharatpur, Pokhara, Butwal and Biratnagar.

The local level will be encouraged to run integrated land development program for managed housing. New city construction work will be taken forward in public-private partnership by attracting local and foreign investors in four places of Changunarayan, Suryabinayak, Madhyapur Thimi, Shankharapur and Kageshwari Manoharanagarpalika areas. The city will be revived by developing urban infrastructure in the old cities including Maglung, Ramechhap, Bhimphedi, Vandipur, Tansen, Narayan, Jumlakhalanga and Silgadhi.

Capacity will be enhanced at the local level to implement the National Building Code and building construction standards.

Capital will be increased by restructuring the Urban Development Fund as a Municipal Finance Corporation. The corporation will be developed into an institution that mobilizes technical assistance and grant mixed finance for the development of physical infrastructure in the urban areas.

Grants will be provided to the local level for the establishment of environment friendly technology based waste treatment plant in partnership with the local level and private sector. I have allocated budget to set up a furnace plant at Bancharedanda for the permanent solution of the problem related to waste management in Kathmandu Valley.

According to the concept of Greater Kathmandu, urban infrastructure will be developed in Panchkhal, Dhulikhel, Banepa, Panauti, Manchaur, Chaimle, Dakshinkali, Chitlang, Lamidanda, Dhuniveshi, Bidur, Trishuli Corridor and Thansingh areas around the valley. Feasibility study will be done for construction of tunnel at Tathali-Chhap-Raviop of Bhaktapur and Godavari-Manchaur of Lalitpur.

I have allocated Rs. 3.47 billion for the cleaning and beautification of Bagmati, Vishnumati, Ichchhumati, Karmanasha, Hanumante and other rivers within the Kathmandu Valley. I have allocated necessary amount for the construction of Nagmati Dam in Sundarijal to conserve the watershed of the source of Bagmati River and improve the water flow.

I have allocated Rs. 5.15 billion for the construction of federal parliament, government building under construction, conference center and auditorium. Arrangements will be made to operate government owned assembly halls and conference centers in public-private partnership.

I have allocated Rs. 3.31 billion for the development of new cities in 27 places of Pushpalal Highway and Postal Highway.

In order to maintain uniformity in the design and facilities of government offices and housing, the Ministry of Urban Development has made arrangements to formulate and implement building construction criteria on the basis of the scope of work of the office, nature of service and working manpower.

Financial transfer will be made for the construction of infrastructure in Deukhuri, the center of Lumbini province and Godavari, the center of the far western province. I have allocated budget to develop the infrastructure of Nawalparasi East and Rukum East district headquarters.

The area from Narayanhiti Museum in Kathmandu to Dasharath Stadium will be developed into a state-of-the-art Central Park. This includes an open stage with underground parking, a beautiful garden and Bhrikuti Mandap with an exhibition space, Ranipokhari, Ratna Park, Tundikhel, Sundhara, Bhadrakali and Dasharath Stadium.I have allocated budget to develop modern infrastructure.

The private sector will be encouraged to build underground and multi-storey parking lots in the big cities of the country including Kathmandu.
Arrangements will be made to update the GIS mapping of drinking water, telephone, sewerage and electricity service providers in the city and urban areas by mapping their infrastructure network.

Construction of outer ring road will be started in Kathmandu Valley through land consolidation method. Charlene’s link road will be constructed in possible places to facilitate the outer ring road and communication with the city.
Construction of South Asia Center will be started next year in Pulchowk, Lalitpur in partnership with public transport.

For the Ministry of Urban Development, Rs. 41.2 billion.

Air infrastructure

International investors will be selected for the preparation of detailed project report of Nijgadh International Airport, determination of investment structure and development and operation of infrastructure accordingly. In the coming Fiscal Year, land acquisition, site clearance and pre-construction of airport will be completed.

Upgradation work started to transform Tribhuvan International Airport into a boutique airport reflecting the original culture of Nepal will be completed. To address the air pressure of this airport, taxiway expansion, construction of parking-way will be completed. Renovation of terminal building will be started. I have allocated Rs. 6.95 billion for this.

I have allocated Rs. 8.5 billion to complete the remaining construction work of Pokhara International Airport and bring it into operation in the coming Fiscal Year. I have allocated Rs. 3.53 billion to complete the construction of Gautam Buddha International Airport and bring it into operation and to start the construction of the second terminal building and other infrastructure.

Expansion, upgrading and modernization of domestic airports will be continued. Test flights will be conducted to Sukilumba of Ilam, Simichaur of Gulmi and Masinchaur of Dolpa.

Surkhet and Bharatpur airports will be expanded and upgraded. Construction of new terminal buildings will be started at Nepalgunj and Biratnagar airports. Construction work of Narayanpur Airport in Dang will be started after completing the environmental impact assessment. I have allocated Rs. 1.33 billion towards the internal airport.

Khiji Chandeshwari Airport of Okhaldhunga will be brought into operation. Runway expansion work of Taplejung Suketar will be completed. The construction work of Chuhandanda Airport of Tehrathum will be expedited. Suketar Airport will be renamed as Rabindra Adhikari Airport and Chuhandanda Airport will be renamed as Ang Chiring Sherpa Airport.

Construction of helipads will be completed at all local levels within the next Fiscal Year for urgent work including emergency health care and disaster management.

Local infrastructure development

With the joint investment of Union, State and local level, the local level center will be connected to the center of the concerned province or the nearby national highway by paved road within next three years. I have done.

I have allocated Rs. 1.52 billion to continue the Terai-Madhesh Prosperity Program. I have allocated Rs. 3 billion for the implementation of High Hill and Mountain Area Prosperity Program and Northern Region Infrastructure Development and Living Improvement Program.

Respecting the need to manage resources for the prevention, control and treatment of the Kovid epidemic and the relief and economic recovery to be provided to those affected, and also the suggestions of the common people, I have scrapped the local infrastructure partnership development program.

Construction of 730 suspension bridges will be completed next year under the program to replace the twin and risky temporary bridges. Connection of new twins has been stopped. I have allocated Rs. 5.5 billion for the construction of suspension bridges.
Construction of administrative buildings at all local levels will be completed within the next two years. I have allocated Rs. 800 million to complete the construction of 70 administrative buildings next year and start construction of additional 100 buildings.

The capacity of the District Coordinating Committee will be developed to monitor and report on the development programs run at the local level. I have arranged grants to the District Coordinating Committee Federation, Nepal Municipal Association and National Federation of Villages.

For the Ministry of Federal Affairs and General Administration, Rs. 30.83 billion.

Post-earthquake reconstruction

Based on the experience gained in the field of post-earthquake reconstruction and rehabilitation, a ten-year program of building a secure Nepal will be implemented from the next Fiscal Year.

The success and experience gained by Nepal in post-earthquake reconstruction will be presented to the world by organizing an international conference next year. An Earthquake Museum will be established to impart knowledge about earthquakes to future generations.

In the coming Fiscal Year, construction of 14,155 classrooms, 105 health institutions, 195 cultural and archeological heritages and 36 government buildings of 1,307 schools will be completed.

Reconstruction and incineration of important buildings and archeological heritage including Rashtrapati Bhawan, Vavar Mahal, Balmandir, Keshar Mahal, Harihar Bhawan and Trichandra College damaged by the earthquake will be expedited.

As the tenure of the National Reconstruction Authority is till the next Poush, the responsibility of implementation with the necessary resources and records to complete the unfinished project will be handed over to the thematic ministry from the next fiscal year.

I have allocated budget to complete the work of incineration of tower complex, Singha Durbar and reconstruction of wooden pavilion within the time period of NEA.
I have allocated Rs. 33.55 billion for post-earthquake reconstruction.

Communication and Information Technology Development

The present government is committed to democracy, including the right to information provided by the constitution and full freedom of the press. A policy will be adopted to develop the professionalism of the media house, media personnel and the overall press world.

Digital Nepal Framework will be implemented to make maximum use of information and communication technology. Simple and easy access of the general public to public services will be expanded using digital technology. A digital economy based on knowledge and information will be developed.

Arrangements will be made for the Government of Nepal to bear 50 percent of the insurance premium by insuring accident up to Rs. 7 lakhs for working journalists. I have made an arrangement to provide free treatment to the journalists who are members of the Federation of Nepali Journalists from the 1st of July on the basis of the treatment facility identity card issued by the Press Council in all the government health institutions in the country.

A Mass Media Training Institute will be established within the next Fiscal Year to enhance the professional skills and professionalism of the journalists. I have allocated necessary funds to complete the building under construction of the Federation of Nepali Journalists.

To keep the history of press and journalism of Nepal alive, a press museum will be established in the premises of Sanchar Gram. Journalists who have lost their jobs due to COVID-19 will be given writing scholarship and refinancing to the media house and business continuity loan facility.

The arrangement of depositing 10 percent of the amount provided by the Government of Nepal to the media establishments through public welfare advertisements in the Journalist Welfare Fund will be implemented soon. 10 percent of the income earned from advertisements from the private sector will be encouraged to be deposited in the fund. Welfare fund mobilization procedure will be formulated and implemented within three months.

The quality of telecommunication services will be improved. The mobile device management system will be brought into operation from next Shravan 1. I am confident that the use of illegal mobile sets will be brought under control and criminal activities using mobile phones will also be brought under control.

Broadband internet service will be expanded in all local level centers, ward offices, health institutions, community campuses and secondary schools by mobilizing rural telecommunication development fund.

The construction of optical fiber laying information highway will be completed across the country within the next two years. Forge service will be expanded at all local levels. Cyber ​​security of websites, applications and servers will be strengthened by institutional strengthening of National Cyber ​​Security Monitoring Center.

Government advertisements will ensure equitable access to all types of newspapers, radio, television and online media.
All types of services provided by government agencies will be interconnected with citizen apps.

Film cinemas will be constructed in all the states. Feasibility study will be started for the construction of film cinemas in the Ganesh Himal region. The concept of Story Bank will be implemented for making excellent films.

The postal service will be restructured and made modern commercial. Important documents including citizenship and passport will be delivered safely and quickly to the doorsteps of the citizens through the postal service. Feasibility study will be done to expand e-commerce through the postal service.

The access of Radio Nepal will be expanded by adding transmitters in nine different places including Panchthar, Bhojpur, Siraha, Parbat and Dang.

NTV World Channel will be launched to bring the broadcasting of Nepal Television to the international level.
For the Ministry of Communications and Information Technology, Rs. I have allocated Rs. 7.74 billion.

Respected sisters and brothers,Now I present the programs and appropriations related to national security and good governance:

Law and justice

I have allocated budget for the institutional strengthening by implementing the strategic plan of the Judiciary and the Office of the Attorney General. I have allocated budget for the construction of Supreme Court, Baglung and Surkhet High Courts and District Court Buildings in Bhaktapur, Chitwan, Syangja, Lamjung and Bajura.

The free legal aid program conducted in 47 districts for single women, dalits, persons with disabilities, women victims of violence, children, senior citizens and helpless citizens who do not have access to justice will be extended to all districts in the coming Fiscal Year.

I have made an arrangement to advocate on behalf of the victims in all the districts of the country.
To increase the capacity of the Judicial Committee at the local level, arrangements will be made for official level staff with knowledge and experience of law.

Social awareness and legal action will be empowered to eradicate caste discrimination and untouchability as a stigma of human civilization.

The rest of the work of the peace process will be completed. Under Transitional Justice, I have allocated necessary budget to the Truth and Reconciliation Commission and the Commission for Investigation of Disappeared Persons to fulfill their responsibilities.

The families of martyrs who sacrificed their lives during the people’s movement, armed struggle and revolution for progressive democratic change in Nepal, the families of the disappeared, the warriors of democracy, the conflict victims and the displaced, the disabled and the injured will be assisted, respected and protected. Loans will be provided to become self-employed.

National security

The long-running armed conflict and violent activities in the country have come to an end and laid the foundation for lasting peace.

The security forces will be strengthened and strengthened by arranging arms, security equipment and vehicles required to maintain peace and security by controlling crime. An additional 120 ward outposts of the Armed Police Force will be established.

In order to make the immigration service at Tribhuvan Airport international standard, arrangements will be made to use the Advanced Passenger Information System, which receives the details of the passengers in advance, and issue electronic visa with QR code to operate the electronic gateway.

The physical infrastructure of all the immigration offices at the border will be improved and the records including biometric details of foreign nationals entering Nepal will be updated in the electronic system.

Prisons will be developed into correctional facilities. Construction work of Nuwakot Rabankemakhula Prison will be completed next year. I have allocated funds for the construction of prisons in Panchthar and Morang.

In line with the target of distributing national identity cards to all Nepalis within two years, identity cards will be distributed to 7 million people next year. Personal event registration will be made qualitative, simple and easy through the use of electronic means.
Law enforcement agencies will be mobilized in a coordinated manner to control drug production, smuggling and trafficking.

Awareness programs will be conducted in coordination with community organizations to protect youth and children from addiction. Human trafficking will be controlled by empowering the security forces through the use of modern equipment, information technology and training.

By increasing the capacity of the Nepal Army, it will be mobilized for national security and defense and development construction and disaster management.

I have given continuity to the program from bunker to barracks. National service team will be dedicated to nationalism, patriotism and national service. I have allocated necessary budget for the construction of physical and educational infrastructure of National Defense University.

Disaster management

Disaster Risk Reduction Financial Strategy will be implemented to reduce the pressure on government funds to manage disaster risk.

Disaster warning system will be developed and the damage will be minimized. I have allocated budget for disaster preparedness, search, rescue, relief and rehabilitation programs.

Helicopters and other equipment including watering buckets will be kept in readiness to be mobilized under the management of the Nepal Army to minimize the damage caused by fire. Arrangements will be made for all the concerned agencies including security to be active in the disaster management in a coordinated manner.

For disaster rescue and management, multipurpose robotic fire fighting, state-of-the-art fire brigade, multisitter ambulance, rescue vehicle and fire brigade will be arranged at all local levels to reduce and manage the fire.

Institutional capacity will be enhanced by structural reform of the National Disaster Risk Reduction and Management Authority to expedite post-disaster reconstruction.

International relations : Nepal Budget for Fiscal Year 2078/79

International relations will be established on the basis of universal equality while protecting Nepal’s independence, sovereignty, geographical integrity, independence and national interest.

While conducting foreign policy, national interest, mutual benefit and respect, international commitment and responsibility and justice will be made the basis.
The Everest Dialogue will be organized next year to maintain regional and international solidarity and cooperation on climate change and mitigation of its effects.

Diplomatic missions abroad will be made more active with defined responsibilities for international trade, secure foreign employment, foreign investment and tourism promotion.

Overseas missions will be mobilized for the protection of the interests of Nepalis living abroad, protection from infection risk and the continuation of decent employment.

In order to utilize the knowledge, capital and technology of non-resident Nepalis for national development, the NRN fund established with the investment of the Government of Nepal will be used for infrastructure development.

National servant

Public service will be made effective by boosting the morale of civil servants. Collective accident insurance of Rs. 1 million for civil servants and Rs. I have made an arrangement for the Government of Nepal to reimburse the amount of 1 lakh health insurance premium.

Arrangement will be made to fill the post of civil service within 6 months.
Arrangements will be made to construct collective housing in all the states from the Employees Provident Fund and Citizens Investment Fund to provide housing facility to the national servants at concessional rates.

The service facilities provided to the public servants will be made time related. I have increased the salary of all public servants by Rs. 2,000 / – per month with effect from 1st July, 2078 to increase the effectiveness of public service by raising the morale of the public servants.

I have given continuity to the dearness allowance provided at present. A pay commission consisting of experts will be formed to study and submit suggestions on the salary and other service facilities of the civil servants in order to maintain the same with other countries in South Asia.

The services of the civil hospital will be expanded in collaboration with the provincial level hospitals. 50 percent of the social security tax collected from the civil servants will be made available for the development of the infrastructure and services of the civil service.

Civil schools will be established in all the states to provide quality education opportunities to the children of civil servants. In partnership and cooperation with the states, the level of civil schools in Dhankuta and Dipayal will be upgraded. The children of the civil servants will be provided scholarships up to Rs.

I have made an arrangement to distribute the pension rights and other services to the teachers across the country from the office of the Comptroller and Auditor General of the district concerned from the 1st of Shravan.

Infrastructure of Nepal Administrative Training Institute will be developed. A high level training institute will be established in Chandragadhi, Jhapa to provide continuous training to public officials and promote continuous learning programs.

Good governance public service flow

Government cleanliness will be maintained by strictly implementing the zero tolerance policy against corruption. The promise that I will not allow corruption, I will not allow corruption to take place, I will work honestly for the country and the people will be fully implemented.

Public service will be made accessible, fast and technology friendly. The system of taking backing of service recipients will be institutionalized. Arrangements will be made for immediate resolution of grievances received from the citizens. Performance agreement with quantitative and measurable indicators will be signed with key officials and project heads.

Capacity building and institutional strengthening of constitutional bodies will be done. Infrastructure will be constructed by arranging land in suitable places within the Kathmandu Valley for the constitutional body which is yet to be prepared. I have allocated necessary amount for the strengthening and capacity building of the National Human Rights Commission.

Feasibility study will be done for the use of information technology in the electoral system. I have allocated necessary amount for the upcoming local level election to the House of Representatives.

In order to enhance the quality of infrastructure projects, the scope of technical testing will be expanded through the National Vigilance Center.

Respected sisters and brothers,I now present programs and appropriations related to planning and public finance management:

Financial planning and statistics

The role of the National Planning Commission in formulating development policy and planning, level coordination, monitoring and evaluation of policy research and implementation will be strengthened. Mid-term evaluation of the current Fifteenth Plan will be done.

A separate action plan will be formulated and implemented to manage the impact of grant assistance, trade facilitation, opportunity for representation in the international arena, etc. in the transitional period after Nepal has been selected for upgrading from least developed to developing country.

Arrangements will be made to make available the fragmented and regional data up to the provincial and local level by completing the work of National Census, Nepal Living Standards Survey, National Agricultural Census and Industrial Census next year.

Information stored between various government agencies will be collected and stored securely. Wig data processing capacity will be developed. The concept of open statistics will be implemented gradually.

Public institutions

Proposals will be invited to operate non-operational and low capacity government industries including agricultural tool factory, butwal yarn factory, Gorakhkali tire factory, Birgunj sugar factory, Hetauda textile industry in partnership with the private sector.

The private sector will be encouraged to operate with additional investment by counting the land and physical infrastructure of the industry as investment from the Government of Nepal.

The organization of Nepal Airlines Corporation will be restructured and made professional and competitive. The process of recruiting strategic partners will be started through open competition. The share capital structure of the corporation will be increased by changing it.

In order to expand the access of the service recipients to the ownership and return of Nepal Telecom Company, 22 percent shares of the company will be disinvested to the natural person consuming the mobile, landline and internet services of the company.

Arrangements will be made for the customers who are currently using the services of the company and will be added by the end of 2078 BS to participate in the purchase of shares. The details of the company’s share disinvestment process and share price will be decided by mid-September 2078.

Whether the privatized corporations have complied with the terms of the agreement will be monitored annually. The assets of the privatized corporations used against the terms of the agreement will be returned to the Government of Nepal.

Implementation of financial federalism

Cooperation and coordination between the federal, state and local levels will be further strengthened. The role of Inter-Provincial Council, Provincial Coordinating Council and Intergovernmental Finance Council will be made more effective.

Timely amendments will be made in the Local Government Operation Act and Intergovernmental Finance Management Act. In order to make the coordination between the federal, state and local levels effective for project management, the timetable for presenting the budget by the state and local level will be modified.

In order to fill the shortage of technical manpower at the state and local level, an arrangement will be made to fill the vacancies in the technical posts on permanent basis.

In collaboration with the Government of Nepal, state and local level, operation of electric vehicle with commercial potential, information technology park, construction of bus park, tourist infrastructure, waste management, commercial agriculture, stadium etc. will be implemented.

By developing the capacity of the District Coordination Committee, monitoring and evaluation of the projects operated through conditional grant, special grant and supplementary grant will be made active.

Public finance and budget implementation

I have made an arrangement for the concerned ministry to approve the procedures, directives and criteria required for the implementation of the budget with the consent of the Ministry of Finance. I am confident that this will speed up the implementation of the program.

I have simplified the process of remittance and program amendment by upgrading the ministry level budget information system.

Implementing bodies have made arrangements for remittance and program amendment through electronic system and approval by the Ministry of Finance.

The National Planning Bank will be updated on a regular basis. Only pre-prepared projects including feasibility study will be implemented.

A quick, transparent, easy and predictable process will be followed while acquiring land to end the situation where development projects are stalled due to delays and disputes in land acquisition. While determining the compensation, legal provision will be made not to exceed three times the government assessment for tax purposes from the local level in the previous fiscal year for all kinds of compensation including the value of the land.

As the capital transfer amount from the Government of Nepal to the state and local level is not accounted for in the current account, I have mentioned the financial transfer in the current and capital headings in the budget schedule.

Financial discipline will be maintained by making the responsible officials directly accountable for the result of public expenditure. Internal control system will be strengthened for efficient use of public expenditure.

The project head will be made responsible for completing the project on time by adopting performance based reward and penalty system. A policy will be adopted not to transfer the project head and chief responsible staff with satisfactory performance till the project period.

In order to expedite the implementation of projects of national pride and transformation, separate legal arrangements will be made for land acquisition, environmental impact assessment, manpower management and procurement process for road, railway, urban infrastructure, irrigation, drinking water, international airport and hydropower projects.

Arrangements will be made to prevent shortage of resources in the implementation of these projects.
Timely amendments will be made in the procurement law to solve the problems seen in public procurement management.

I have given continuity to the criteria related to maintaining economy in public expenditure, 2077 BS. Provision will not be made to appoint consultants in the work to be done from regular structure.

International development assistance will be mobilized in priority programs and projects of national need so that development results can be achieved.
Public debt will be kept within the required limits. I have continued the policy of mobilizing internal debt only for development expenditure. The loan amount will be used in productive sector.

Financial sector management

Financial stability will be maintained by adopting strong regulatory management and institutional good governance. The resources in the financial system will be mobilized in the productive sector for economic growth, promotion of indigenous entrepreneurship and job creation. Second financial sector development strategy will be formulated and implemented.

Arrangements will be made to make all types of payments, grants and cash transfers from the banking system, including the revenue received by the Government of Nepal and the social security allowances provided.

The use of electronic payment devices will be made easy, accessible and secure. A National Payment Switch will be established in the coming Fiscal Year to facilitate payment and modification of transactions within Nepal by maintaining interconnection between payment cards, retail payment, QR code and other electronic payment methods. Nepal’s own payment card will be used.

Remittance income from the banking system will be encouraged to invest in productive sectors. Arrangements will be made for the workers in foreign employment to send money home easily from their mobile wallets.

Arrangement will be made to provide additional one percent interest amount if the remittance amount received from the banking system is deposited in the term account of the bank and financial institution.

Alternative tools including commercial welding will be used to meet the long-term financial mobilization needs of large infrastructure.
Contract long term funds including Employees Provident Fund, Citizens Investment Fund, Social Security Fund will be mobilized in the areas of productivity growth, job creation, construction of modern infrastructure and economic recovery.

By expanding the scope of insurance services, access to insurance will be extended to at least one third of the population next year. The arrangement of insuring public infrastructure, government and private buildings will be implemented as a campaign. In case of private house, I have made an arrangement to allow the insurance premium of up to Rs. 5,000 to be deducted for income tax purposes.

Emphasis will be given on development and stability of capital market. Commodity barter market transactions will be conducted from the next Fiscal Year. Products like paddy, maize, wheat, tea, cardamom will be included in the barter trade.

Facilitation will be provided to start commercial hedging services to manage foreign exchange exchange rate risk in development projects operated with foreign investment.
Institutional capacity will be enhanced by increasing the capital of Deposit and Credit Guarantee Fund. I have made an arrangement to reduce the deposit protection premium.

The implementation of the National Strategy for Prevention of Money Laundering and Control of Financial Investment in Terrorist Activities and Risk Reduction will be made more effective.

Respected sisters and brothers,
I now present the estimates of budget allocation and resource management for the implementation of the above sectoral policies and programs:

Estimates of budget allocation and resource management for the implementation

While determining the revenue policy and tax rates for the coming Fiscal Year, I have given high priority to speedy economic recovery with relief and relief to the taxpayers in the adverse situation created by human health and economic crisis.

The objectives of revenue mobilization are as follows:

  • Covid-19 to provide tax exemptions and concessions to industries affected by the epidemic,
  • To promote internal and external investment through revenue policy and to protect indigenous industries and facilitate trade,
  • To mobilize additional revenue through expansion of tax base, protection of tax base and control of revenue leakage,
  • To make the revenue system more progressive, clean, transparent, automated and predictable, and
  • To increase voluntary tax participation by increasing the efficiency of revenue administration, infrastructure development and maximum use of information technology.

 

Respected sisters and brothers,To achieve the mentioned objectives, I have presented the following policies and programs:

About taxes :

Discount and convenience

90 percent to the taxpayers with an annual turnover of up to Rs. 20 lakhs, 75 percent to the taxpayers with an annual turnover of Rs. 20 lakhs to Rs. 50 lakhs.

And I have made an arrangement to give 50 percent income tax exemption to the taxpayers who have an annual turnover of Rs 5 million to Rs 10 million.

I have extended the period for reversing the loss-making period of hotels, travel, trekking, transport and air services, film industry and media houses to 10 years by providing only 1 percent income tax.

As per the Companies Act, 2063 and the Private Firm Registration Act, 2014, I have made an arrangement to waive the remaining fees and penalties if the companies and firms that have not submitted and renewed their annual statements up to the Fiscal Year 2075/76 have paid 10 percent of the details and fees and fines by mid-October.

Pursuant to the Income Tax Act, 2058, Value Added Tax Act, 2052 and Excise Act, 2058, the taxpayer has not been satisfied with the assessment of tax by mid-July 2077 and the case is pending in the Inland Revenue Department or Revenue Tribunal or court except for false and counterfeit invoices. I have made an arrangement to deduct the remaining interest, fees, additional fees and penalties if 50 percent of the tax and interest is paid by mid-December 2078.

In accordance with the Income Tax Act, 2058, Value Added Tax Act, 2052 and Excise Act, 2058, I have made an arrangement to waive the fee, penalty and additional fee if the tax amount due till mid-July 2076 and the interest incurred are filed by mid-December 2078.

In the Fiscal Year 2077/78, I have made an arrangement to deduct the amount contributed to the Covid-19 Infection Prevention, Control and Treatment Fund established by the Government of Nepal, State Government or local level while calculating the taxable income of that year.

Out of the amount allocated for the purpose of carrying out professional social responsibility in the Fiscal Year 2077/78, I have made an arrangement to deduct the expenses incurred for the purpose of income tax calculation for the construction of specialized hospitals specified by the Ministry of Health and Population or for the treatment of Kovid-19. .

I have made an arrangement to give additional 25 percent discount while calculating the taxable income of the pensioners.

I have made an arrangement to deduct the value added tax paid on the purchase of diesel and LP gas used in the taxable business of the taxpayer. I have exempted value added tax on transportation service, vehicle rental, cargo service, e-library service, deposit security fee, trekking and tour package, service fee for silo and silo use and fee for issuing certificate of origin.

Under the facility of bonded warehouse, I have extended the deadline for export of bank guarantee till mid-April 2078 for the industries which could not export the raw material imported by the export oriented industry under the bank guarantee.

I have exempted customs duty, value added tax and excise duty on import, production and sale and distribution of oxygen gas, liquid oxygen, oxygen cylinder, oxygen concentrator and other life-giving materials and medicines till mid-January 2078.

In order to increase the internal consumption of electricity and to promote the use of environmentally friendly means of transportation, I have abolished excise duty on import of electric vehicles and reduced the customs duty significantly.

I have reduced the customs duty rate of induction cooker to 1 percent. I have reduced the customs duty by abolishing the excise duty on refrigerators, grinders, rice cookers, fans and other electrical appliances.

To promote infant health and nutrition, I have reduced the customs duty on infant milk by 50 percent.

Expansion of tax range

I have kept the rate of value added tax unchanged. I have made general adjustment in the rates of customs duty. I have increased excise duty on alcohol, beer, wine, cigarettes, tobacco and soft drinks.

Taxpayers dealing in taxable goods and services in excess of the exemption limit will be brought under the scope of value added tax. Arrangement will be made for all the taxpayers registered for value added tax to issue invoices through electronic system.

Keeping the rate of tax levied on small taxpayers unchanged, the limit of transactions for submitting forecasted income statement is Rs. 20 lakhs to Rs. 3 million. The tax-based taxpayer’s turnover limit is Rs. 50 lakhs to Rs. 10 million. I have made an arrangement that no tax will be levied on the income of the collective investment fund.

An arrangement will be implemented to immediately refund the amount of 10 percent of the value added tax paid by purchasing goods and services by paying through debit card, credit card, QR code, scantupe and other electronic means.

Industrial protection and investment promotion

For the protection of indigenous industries, I have made an arrangement that the customs rate of industrial raw material will be at least 1 tier lower than that of manufactured goods. I have removed the excise duty on some domestic products.

I have exempted customs duty on equipment and parts used in tea, jute, film, pashmina, hatchery industry and agriculture and nursery farms. Shipping companies registered in Nepal have reduced the customs duty on importing containers.
In order to increase production and employment by commercializing agriculture, I have given 50 percent exemption on tax on commercial agricultural income. I have given 50 percent rebate on the customs duty on a means of transportation imported by a collective commercial agricultural cooperative.

In order to accelerate the economic recovery after the Kovid epidemic, a policy will be adopted to reduce the institutional income tax rate to 15 percent within five years for productive special industries to be established from July 1 of the next fiscal year.

I have given 100 percent exemption to the startup business from income tax for 5 years from the date of commencement of business. Private sector enterprises have set up a maximum of 5 startup businesses at a cost of Rs. If seed capital up to Rs. 1 lakh is provided, the amount can be deducted while calculating the taxable income.

I have made an arrangement to give 20 percent tax exemption on the income earned by selling the raw materials and auxiliary raw materials produced in the country to the special industry and only 10 percent tax will be levied on the income earned by the special industry.

I have reduced the rate of advance tax on interest payment of loans taken by banks from foreign financial institutions. I have made an arrangement that cooperative banks and cooperative unions do not have to deduct advance tax on the interest paid on mutual loan investment.

I have made an arrangement to give 50 percent exemption of income tax for the first 3 years and 25 percent exemption for the next 2 years to the industry which produces new goods using only the used goods which have a direct impact on the environment as raw material.

I have made an arrangement to give 50 percent exemption in income tax for 3 years after the commencement of production and 25 percent for the next 5 years if the industries operating outside the industrial zone or industrial village are shifted to industrial zone or industrial village.

Revenue leakage control

Revenue leakage will be strictly controlled. Market monitoring, tax testing and research will be intensified. An integrated taxpayer information system will be developed by maintaining interconnection between central invoice monitoring system, Ashikuda system, VCTS information system, land management and records and information system of banks and financial institutions.

The valuation of imported goods will be based on the transaction price. A robust, factual and realistic customs valuation system will be developed on the basis of information collected through regular market surveys.

The system of procuring low invoiced goods at the customs point will be strictly implemented. The post-customs clearance test will be made more effective.

Improving the tax system and administration

A high level tax system review commission will be formed to suggest reforms in direct and indirect tax system including value added tax, income tax, customs, excise and non-tax to expand the scope of revenue and protect the tax base, control tax leakage and create an investment friendly environment.

Arrangements will be made for all the taxpayers who have not paid tax arrears and have paid tax as per the tax assessment in the current year to get the tax payment certificate from the automated system. I have removed the current provision that the purchase and sale account of value added tax has to be certified by the tax officer every year.

The sixth phase of customs reform and modernization plan will be implemented from July 1. The national one-door system will be fully implemented.

Arrangements will be made to collect all the taxes and tariffs to be paid at the customs point through electronic system. The industry has made arrangements to renew the export-import code number for one year at a time.

Modern equipment including container scanner machine, weighing weighing machine will be installed in seven big customs offices including Mechi, Biratnagar, Birgunj, Bhairahawa, Nepalgunj, Rasuwa and Tatopani. Customs offices will be set up at Gautam Buddha and Pokhara International Airport and Janakpur Railway Station.

In order to control the import of goods that adversely affect the national security, human health and the environment, an integrated laboratory will be established and upgraded in the customs offices on priority basis.

Arrangement will be made to scan the QR code while using the excise sticker and record the data in the automatic system of the Inland Revenue Department. Arrangements will be made to keep flow meters in the establishments producing beer.

Ending Statements :

Respected sisters and brothers,

Actual Expenditure of Fiscal Year 2076/77  Revised Estimates of Fiscal Year 2077/78 and Estimated Income-Expenditure Details of Fiscal Year 2078/79 have been mentioned in the Schedule. Details regarding the assistance to be mobilized from the organization have been made public for Nepal Budget for Fiscal Year 2078/79 .

In the coming Fiscal Year, success will be achieved in controlling Kovid epidemic, vaccination campaign will be completed, health infrastructure will be radically improved, implementation process of big projects of strategic importance will be taken forward, road network will be expanded, access to modern energy will be expanded in all Nepalis’ homes, information technology will be expanded. I expect a speedy economic recovery with the operation of two more international airports.

The economic growth rate is expected to be around 6.5 percent in the coming fiscal year based on the government’s economic recovery program and confidence that economic activities will return to normalcy from the vaccination system against COVID-19 to the normalization of the situation. Will

Despite many inconveniences and adversities, I am confident that the budget for the coming Fiscal Year will make a significant contribution to fulfilling the national aspirations of a prosperous Nepal and happy Nepalis. I heartily request the parties, people’s representatives, social organizations, private sector and civil society to make positive contributions from their respective places.

Implementation of the budget for the coming Fiscal Year 2078/79 will reduce the risk of corona by providing the necessary infrastructure, equipment and manpower to save the lives of the people from all kinds of diseases, controlling epidemics, conducting economic activities, speedy recovery of sluggish economy, inclusive access to vocational education, labor market.

I expect the coming person to make a significant contribution to the establishment of a welfare state by providing employment and employment opportunities and social security and protection based on the life cycle.

I express my heartfelt gratitude to the Honorable President, Honorable Vice President, Honorable Prime Minister, Honorable Chief Justice, Honorable Speaker of the House of Representatives and Honorable Speaker of the National Assembly for their guidance in formulating the budget.

I would like to express my heartfelt thanks to the political parties, economists, private sector, cooperative sector, citizens and the mass media for their helpful suggestions in the formulation of the budget. I would like to thank you. I have also expected everyone’s constructive support in the implementation of the budget.

In conclusion, I heartily urge all Nepali brothers and sisters to take part in the campaign for the development of the country by adopting health precautions and being safe from the risk of Kovid-19 epidemic.
Thank you.

Download PDF  of Nepal Budget for Fiscal Year 2078/79 :

Who is finance minister of Nepal ?

Bishnu Prasad Paudel is finance Minister of nepal .

How much tax do I pay for selling shares?

If You sell the share before 365 days of buying share you should pay 7.5 % of profit and if you Sell after 1 years you should pay 5 % of profit ganed .