Budget Size: Rs 15.32 kharba

Current Expenditure: Rs 9.57 kharba (62.4%)

Capital Expenditure: Rs 4.08 kharba (26.6%)

Financing: Rs 1.67 kharba (11%)

Tax revenue: Rs 9.81 kharba

Foreign Grant: Rs 57.99 arba 

Foreign Debt: Rs 2.98 kharba

Internal Debt: Rs 1.95 kharba 

Inflation to be controlled under 6%This year’s major updates:

Growth Rate: 7%

 Inflation: 4.5%

This year has witnessed highest number of tourists visits.

Import increased by double in the first 9 months

2257 branches of BFIs opened this year.

39% decline in workers going abroad

21% rise in remittance 

Dr. Yuvraj Khatiwada is currently presenting the budget for the FY 2076/77. Here are the major announcements:

Major policies for upcoming fiscal year:

 The major objective of this year’s budget is to promote fundamental right of citizens and upgrade economy of developing countries.


Rs 1.63 kharba for education

  1. 70 districts targeted to receive full literacy rate in upcoming FY
  2. Rs 8.53 arba allocated for constructing 300 schools
  3. Rs 3.19 arba allocated for scholarships
  4. Rs 1.50 arba for volunteer teachers in schools where teachers are not available
  5. Rs 1.92 arba to conduct skill-based training for 83,000 youths
  6. To bring one window policy for operation of all universities


Rs 68 arba for health sector

  1. Primary service to be made free of cost from all local level medical facilities
  2. All Nepalis to be brought inside health insurance net
  3. Rs 2.20 arba for people under poverty line
  4. 52,000 female volunteers will be getting Rs 3000 as travel allowance, for this 15 crore has been allocated
  5. Rs 5.57 arba for construction of emergency medical facilities in all VDCs
  6. All provinces to have regional hospitals
  7. Rs 1 arba allocated to upgrade of various hospitals
  8. Rs 40 crore allocated to make Bir Hospital of International standard
  9. Smoking prohibited from all public places and public transportation

Construction and labor

Rs 43.46 arba for drinking water

  1. Rs 7.39 arba additional fund allocated for Melamchi Drinking water for infrastructure development
  2. PMEP’s unemployed individuals will be mobilized in various public works. Rs 5.1 crore allocated for it.
  3. Rs 7.14 arba for employment program

Social security

Rs 64.5 arba for social security

  1. Elderly allowance for people above 70 years of age increased from Rs 2000 to Rs 3000
  2. 13 lakh elderly people will be benefitted
  3. Labor employment agreement is done with the country importing Human Resource and the initial cost will be bore by the employers
  4. Single allowance is increased by Rs 1000 to Rs 2000
  5. Retirement center to be established
  6. People below poverty line and above the age of 70 will be given insurance worth Rs 1 lakh 
  7. 3.5 lakhs children below poverty line will be benefited with various government incentives

Youth and women

  1. Youth scientific conference will be conducted in the coming year
  2. Women entrepreneurship will be encouraged


Rs 34.80 arba for agriculture

  1. Rs 8.10 arba for prime minister agriculture program
  2. Potato and onion production will be increased
  3. 50% increment in seed purchase budget to Rs 9 arba
  4. Small farmers will be benefited via SKBBL
  5. Public-private model will be implemented to increase agricultural production
  6. Promote organic farming in all provinces with roof-top farming in city areas
  7. People returned from foreign employment will be encouraged to enter into agriculture
  8. Farmers will be disseminated information about agriculture via apps
  9. Agriculture research centers and colleges will be supported


Rs 23.63 arba for irrigation

  1. Weather radar will be brought into operation with Rs 60 crore allocated for 2 more radars

Forestry and environment

Rs 15.49 arba for forestry and environment

  1. Declare this FY as afforestation year
  2. Fruit-bearing trees and herbs will be sown in open forest areas
  3. Each province will have a research and development station for exploring herbs and plants
  4. 116 ponds will be constructed

Land management

  1. Land act to be introduced
  2. Land bank to be established, where land can be taken in lease
  3. Digitization of all land ownership papers and blueprints within 2 years


  1. Tax relief for SMEs and agriculture based businesses
  2. Cooperatives to be supervised for risk management
  3. Cooperative information system to be established 


Rs 22.68 arba allocated for tourism.

  1. Visit Nepal 2020 to be celebrated and promoted by worldwide promotion
  2. One tourism door policy will be implemented
  3. Adventure tourism will be promoted
  4. Internal tourism to be promoted


Rs 2.87 arba allocated for industry

  1. Local products will be promoted and prioritized
  2. Sick industries will be revived by the help of private sector
  3. Made in Nepal products will be made mandatory for gift-giving purpose
  4. 5% interest subsidy in bank loans for garment industries
  5. Udayapur cement and Hetauda cement factories will be upgraded
  6. Challenge fund will be started as an initial capital fund for new and small industry
  7. Major export items will be prioritized
  8. Mining sector will be explored

Commerce and supplies

Rs 11.74 arba allocated for commerce and supplies

  1. Tea branding will be done with auction houses
  2. Dry port in Chobhar and Rasuwagadhi to be established and construction already started
  3. Dry port of Bhairahawa to be upgraded
  4. Anti dumping regulation will be implemented in order to discourage import
  5. Supervision will be strengthened to control fake standard FMCG products
  6. Promoting trade with China
  7. Carteling and syndicate will be eradicated

Infrastructure: Energy

Rs 89.83 arba for energy

  1. Two big hydro power in all provinces
  2. More than 1 KW electricity is projected to be produced in next fiscal year
  3. Upper Tamakoswhi and Rasuwagadhi hydro project to speed up
  4. 1000 MW project to be added in the national grid.
  5. 3500 MW production to be expediate including Upper Tamakoshi, Arun and Trishuli
  6. PPP (Public Private Partnership) module will be explored in HEP production
  7. Local government to get budget to produce electricity from waste and garbage
  8. Hydro electricity projects that have received licenses but not in operation will be reconsidered

Infrastructure: Transportation management and highway

Rs 1.53 kharba for transportation management

  1. Rs 19.18 arba for express highway (East West Highway). The highway will connect Rasuwagadhi to Galchi to Thori to the North.
  2. Rs 96 crore for upgrading BP highway
  3. Rs 1.81 arba allocated for Kathmandu ring road
  4. RS 6.27 arba for Nagdunga surung marga (underpass)
  5. Suryabinayak and Jadibuti highway to be upgraded
  6. Underpass in Baneswor will be constructed
  7. 200 bridges to be constructed for which Rs 7 arba is allocated
  8. Re 1 duty added in diesel and petrol
  9. All the roads to be made at least 2 lane
  10. Railways infrastructure will be explored
  11. East-west and north-west railway to be developed
  12. Rs 7.7 arba to be allocated in order to explore PPP model for monorail and metro in the valley
  13. Engineering staff college to be established
  14. Syndicates to be abolished
  15. Adequate charging facility for electric vehicles with the initiation of NEA

Housing and Urban development

Rs 43.73 arba for housing and urban development

  1. Smart cities to be established in various parts of the country
  2. Rs 4 arba allocated for construction of 300 houses under Safe Housing Project
  3. Assembly hall with capacity of 3000 people will be constructed in Kathmandu and 5000 capacity in next 3 years 
  4. Assembly hall with 2000 people in each provinces
  5. Open areas of government will be used to construct park and green area
  6. Telephone and electricity lines will be kept underground

Earthquake reconstruction

  1. Rs 1 arba for Sundhara reconstruction within 2 years
  2. Rs 58.95 arba for rehabilation and construction work
  3. Rs 1.41 kharba allocated to reconstruct damages of earthquake
  4. Terai-madesh Sambriddhi program to be continued

Air infrastructure

Rs 15.85 arba for air infrastructure

  1. TIA to be upgraded into a boutique airport and will be operational 24 hours
  2. First phase of Gautam Buddha Airport will be completed
  3. Rs 8 arba allocated for Pokhara airport
  4. Infrastructure to be developed for the airport without night-flying facility


Rs 3.99 arba for youth and sports

  1. Rs 10 crore allocated for Mulpani cricket stadium, to be completed within 2 years
  2. International sports stadium to be constructed in Kathmandu

Communication and media

  1. Radio Nepal and NTV will be integrated
  2. Cyber security law will be made more strict
  3. Nepal’s own satellite will be established
  4. Postal services will be upgraded
  5. Digital Nepal framework to be promoted and will be brought into operation
  6. In coming 5 years all government transactions will be digitized

BFIs, private sector and capital market

  1. Merger of big BFIS and insurance companies to be promoted
  2. Gold and silver of general public can be deposited in BFIs
  3. National payment gateway to be promoted
  4. Reinsurance policy to be changed
  5. Electricity and drinking water payments to be made fully digital
  6. PAN system to be implemented in share market
  7. SEBON and NEPSE will be upgraded
  8. NRN will be encouraged to participate in capital market
  9. Trustee Act will be prepared

Private sector investment

  1. Private sector investment processes to be eased
  2. One window policy for all information for private sector investment
  3. Company act, banking act and technology transfer act will be amended and implemented
  4. Hedging funds will be explored


  1. Corruption will be controlled
  2. Hello Sarkar will be upgraded and brought in all 7 provinces

Law and order

  1. Supreme court and high court infrastructure will be upgraded
  2. Free legal services will be provided to people who cannot afford it themselves, violated women and children

International relations

  1. International Sagarmatha Conversation will be conducted

National security

  1. Prisons to be upgraded
  2. Prison labor to be used in productive sector
  3. National identity card system to be developed and completed within 2 years

Emergency fund – Rs 5 arba

Economic plan

  1. Government staff salary for gazetted officers and non-gazetted officer to be increased by 18% and 20% respectively and all other incentives and facilities are kept unchanged
  2. Natural resource exploitation to be stopped
  3. Tender need to be given after proper supervision

Revenue sources

  1. VAT rate remains constant
  2. Slight change in import duties
  3. One person one PAN is promoted
  4. Capital Gain Tax (CGT)in share market is decreased to 5%
  5. Single person earning Rs 4 lakh and Couple earning Rs 4.5 lakh is exempted from income tax
  6. CGT in Real Estate is decreased to 5% (sub metropolitan) and 10% in (metropolitan)

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