Major Budget 2077/78 Announcements

Thu, May 28, 2020 9:16 AM on Economy, Exclusive, Stock Market,

Dr. Yuvraj Khatiwada is currently presenting the budget for the FY 2077/78. This is the third time that Dr. Khatiwada is presenting the budget. This year's budget holds a greater importance as it will be the foundation to rebuild the economy post the COVID 19 pandemic. 

Here are the major announcements:


Current expenditure: Rs 9.48 kharba (64.4%)

Capital expenditure: Rs 3.52 kharba (23.9%)

Financial Management: Rs 1.72 Kharba (11.7%)

Tax Revenue collection: 8.89 kharba

Foreign aid: 60.52 arba

Foreign loan: 2.99 kharba

Internal Debt: 2.25 kharba

Economic growth: 7%

Inflation: 7%

Economic growth remained at 2.3% for this year

Per capita Income (PCI) at US $1085

Inflation as of now at 6.5%

Foreign currency holdings at 11.56 kharba

Import has increased by 12.9%

74.40% total revenue collection in Fiscal year

Revenue collection to reach Rs 8.27 kharba

Government expenses estimated to be 10.73 kharba

Investment boards has committed total investment of Rs 14.35 kharba, out of which only 1.55 kharba got approved

Major purpose of budget: Safeguard health of citizens from Corona and related diseases

 Health sector:

 Health ministry budget increase to Rs 90.69 arba

1) Efficient health system to be established, so health system has been focused.

2) Rs 6 arba has been allocated in order to disburse immediate COVID treatment tools. 

3) Rs 5 lakh of free health insurance for health workers.

4) Provincial and local level will be distributed Rs 1.22 kharba.

5) Mandatory health check up for any individual entering Nepal.

6) 12.46 arba allocated for health related infrastructures.

7) Rs 14.27 arba to establish new hospitals.

8) Health insurance to be ensured for everyone within three years. By the end of next year, 40% of population of every VDC will be provided health insurance. For the same purpose, Rs 7 arba has been allocated.

9) National Disease Treatment Center to be established.

10) One doctor, one healthy life program to be encouraged.

11) One phone number for the whole country in order to access ambulance service.

12) Highway Trauma Center to be established.

13) Number of  Health professionals to be increased.

14) Additional 4 lakh families to be provided free health services.


15) Corona insurance 50% premium to be paid by government.

Labour and Employment:

1) "Building our village on our own" program to be encouraged

2) Labours of affected sectors by COVID pandemic will be provided training in local and provincial level. From this 1 lakh people will be employed so Rs 1 arba has been allocated.

3) Entrepreneurs will be provided loan at 2% interest rate for start ups from BFIs. 

4) 75000 people will be provided. 

5) Prime Minister Employment Programme (PMEP) program will provide employment to      2 lakhs people so, Rs 11.60 arba has been allocated for the same.

6) Small Farmers Loan will create 40 thousand job opportunities.

7) 1 lakh 50 thousand will get opportunity to work in agriculture employment.

Social Security:

67.50 arba allocated for social security

1) All the social security allowances will be continued.

1) 3 lakhs Senior citizens will be provided insurance.

3) Infrastructures will be made disable friendly.

4) Blind people will be provided necessary equipment for free.


"One agriculture, one animal" program management for which 50 crore budget has been allocated.

1) Self reliant in Milk and meat related products. 

2) Prime Minister Agriculture Modernization Program will be strengthened.

3) Rs 3 arba 22 crore for Prime Minister Agriculture Modernization Program.

4) Organic farming to be branded and commercialized.

5) Chhobar, Kathmandu will install hub market.

6) Community agriculture will be provided allowance.

7) Fertilizers distribution have been allocated Rs 11 arba.

8) Students in agriculture college will be provided internship and job opportunities.

9) Farmers can now pay crop instrument after the production.

10) 95 crore for sugarcane farmers.

11) Barren land to be used in fruits production.

12) Cattle quarantine facility to be imposed in the major check points.

13) Farmers will be provided the facility of credit card



Rs 27.96 arba allocated for irrigation sector

1) Mahakali irrigation will be National pride project for which 10.25 arba.

Migrants, Agriculture and Land Management

1) Migrants who are interested to do self agriculture can now initiate business via "Land      Bank".

2) Migrants can use land in lease and hence, will get consensus in agricultural inputs.

3) Rs 50 crores allocated for share investment in Land Bank. 

4) Rs 6.20 arba allocated for river monitoring.

5) Rs 2.46 arba for Sunkoshi marine Diversion.

6) Rs 1.73 arba budget allocated for land reform.

7) 60 land measurement offices to be established in local level.

8) Land related works to be digitalized.


1) Co-operatives will be encouraged to go cashless.

2) Co-operatives will be encouraged to be merged.

3) Sana Kisan Bikas Bank will be lent Rs 3.60 arba in order to provide assistance to several cooperatives

4) Deposits of depositors in cooperatives will be safe guarded


1) Tree plantation to be promoted

2) Rs 1.55 arba for Chure Preservation.

3) High value herbs production to be provided.

4) Carbondioxide trade from forests will be encouraged.


1) Rs 1.26 arba for tourism infrastructures

2) "One province, one tourism spot" program to be encouraged.

3) Secondary level will now include tourism related subject.

4) Tax rebate, interest subsidy to be provided to airlines, travels agency, trekking agency.

5) Government employees and related institutions will be encouraged in internal tourism.



1) Local products will be encouraged.

2)Government employees and national organization employees' uniforms will be produced through national fabric.

3) One industrial gram to be established in each province.

4) Public Private Partnership (PPP) to be promoted to establish new industries. 

5) 130 industrial gram to be established, for which 2.64 arba has been allocated.

6) Industries will be provided 50% rebate in electricity use during lockdown.

Commerce and Supplies

1) Tea, coffee, herbal products will be encouraged for branding and export

2) Export to be promoted and given subsidy exportable products

3) Handicraft to be promoted for which SAARC hub to be established

4) 3.10 tonnes of capacity warehouse to be established in local and provincial level

5) Sufficient storage to be kept for most essential FMCGs.

6) Along with pipe line, storage capacity will be upgraded through Nepal Oil Corporation

Financial Sectors:

1) Banking and finance institutes will be encouraged to be merged and acquired.

2)Bank and finance institutes will be utilized to uplift industries affected by the pandemic, creation of employment and introduction of new investments.

3) Digitization and cashless economy will be encouraged.

4) Special convenience loans will be restructured to have broader interest rate brackets upto 5%

5) Rs 13.96 arba has been allocated for interest, loan and insurance subsidy

6) Mobile and internet banking in remote areas will be encouraged.

7) Insurance will be affordable for general public.

8)Microfinances operation will be strengthen

9) Insurance claim process will be made easier

5) Industries and public transportation that have been affected due to COVID will get extension in insurance.

6) Debenture to be promoted.

7) Capital market scope to be enhanced by introducing debt management and stock dealers functioning will be encouraged.

8) Commodity market will be brought in functioning.

9) National payment gateway to be implemented.

10) Hedging for foreign currency will be encouraged for private investment.

11) NEPSE will be made completely digitized.

12)E-payment for all kinds of utilities will be made convenient and encouraged

13) Company registration and dissolution will be made easier.


Education, Science and Technology sector

Rs 1.71 kharba allocated for education, science and technology sector

1) Rs 17.43 arba allocated for education sector.

2) Free education for secondary level students.

3) Literate Nepal mission will be announced.

4) Virtual education, online education and television education will be installed for the upcoming year.

5) Rs 6 arba for President Education Sector improvement.

6) Rs 2.70 arba for scholarships.

7) 800 schools to be established.

8) Free books and stationary has been allocated Rs 2.76 arba.

9) Rs 17.43 arba allocated for University Donation Forum.

10) Rs 7.92 arba allocated for 28 lakhs students to be benefited with Day School Meal in all government schools.

11) Rs 10 arba for sanitary pads to be distributed through local levels.

12) Rs 2.23 arba allocated for six thousand volunteer teachers.

13) Higher education will be made competent.

14) Infrastructures development and education initiation in Madan Bhadari Science and Technology Institute has been allocated 1 arba.


1) Meditation hall of 5000 people capacity to be established in Lumbini.

2) Janaki Mandir area to be preserved.

Youth and Sports:

Rs 2.36 arba budget allocated for Youth and Sports

2) Youth entrepreneurship to be promoted.

3) Skill based training to be provided to youth.

4) Discipline to be encouraged via sports activities among youths.


Women and Children:

Rs 1.14 arba allocated for women and child ministry.

2) President Women Upliftment Program to be encouraged.

3) Pregnant woman to be provided access to health service through helicopter.

4)Women Entrepreneurship to be established.

5)Child Labour to be abolished.

Drinking Water:

Rs 43.10 arba budget for drinking and cleaning ministry

2) Melamchi to be completed within this year and Melamchi water supply can be initiated from the upcoming year.

3) Kathmandu Upatyaka Khanepani Limited (KUKL) to be upgraded as professional institution, for which Rs 1 arba is allocated.

4) "Water of Nepal and Investment of Citizen" program to be promoted.

Sewage Management:

Rs 5.89 arba allocated for sewage management.

Electricity Sector:

1) Up to 10 units, no electricity charge, up to 150 units, 25% rebate and up to 250 units, 5% rebate.

2) 1300 MW electricity production to be added in upcoming fiscal year.

3) Jhapa to Mahendrangar 400 KV capacity nation wide electricity transmission line to be established.

4) Electricity production to be done from Sanjen and Rasuwagadhi Project

5)All households of Nepal will have access to electricity eithin two years

6) Nepal Electricity Authority Management to be reconstructed

7) After completion in Kathmandy valley, underground electricity wiring to be initiated in Bhaktapur, Lalitpur and Chitwan.

8) Hydropowers holding licenses for longer period will be discouraged by cancelling the licenses.

9) Four mini city to be initiated in Kathmandu in PPP model.

10) Nepal's electricity to be sold to India proposal has been introduced.

11) City Development Ministry has been disbursed Rs 37.80 arba.

12) Rs 1.80 arba allocated for infrastructures to be developed in 30 cities of each province.

13) Uranium production possibility research will be initiated.

14) Alternative electricity production program has been allocated Rs 4 arba.

15) Rs 1.80 arba budget allocated for city infrastructures.

Roads and Highways:

1) Every province will have access to at least two highways.

2) Rs 12.21 arba allocated for four lane East West Highway.

3) Hulaki Highway construction to be completed soon.

4) Hulaki Highway has been allocated Rs 7.51 arba and Madan Bhandari highway has been allocated Rs 3.7 arba budget.

5) Rs 3.27 arba crore allocated to complete Pushpalal Highway within 3 years.

6) Rs 8.93 arba budget allocated for Kathmandu Terai fast track.

7) Kathmandu to Nijgad Express Highway to be completed within 3 years.

8) Kantipath and Surya Binayak Dhulikhel road expansion project to be completed soon, for which Rs 1.20 arba budget is allocated. 

9) Rs 642 crore for tunnel based roads.

10) Charging stations for electric vehicles to be promoted.

11) Embossed number plate system to be promoted.


Railway, Airway and Transportation:

Rs 8.66 arba budget allocated for railway transportation .

2) Nepal's own ship will be installed to bring imported goods from Indian sea ports.

3) Gautam Buddha International Airport Construction to be completed.

4) Rs 19.42 arba allocated for four international Airport.

Reconstruction after Earthquake:

1) All the reconstruction after earthquake to be completed in the coming year and Rs 55 arba has been allocated for the same.

Communication and Technology sector

1) Nepal Television's capacity to be strengthen and will be telecasted in international level.

2) Fiber to home and broadband to be accessible nation wide.

3) Online media will be encouraged.

4) Nepal's own satellite system will be introduced.

5)Journalist insurance will be encouraged.

6) Reliable internet connection to be made accessible within two years.

Legal Sector

1) Single women, old age person, children, disabled people will be provided free legal services.

National Security

1) National Security will be strengthen.

2) Regional airbase for Nepali Army will be provided.

3) 39 border posts will be established for border security.

4) 1 crore Nepali citizens will have own biometric identification number in the upcoming year.

5) Punishment for drug dealer and child trafficking.

6) Online complain system to be implemented within three years.

International Relations:

1) International Relations will be established.

2) Migrant workers security will be ensured.


1) Front workers during Corona pandemic will be motivated, for which budget has been allocated.

2) Only front workers involved in Corona pandemic will be provided allowance.

3) Travel allowance, engine, furniture, new vehicles purchase will face cut in budget.

4) Motivation allowance and lunch allowance will be dismissed.

5) Currently least unnecessary public forms and departments will be shut down considering their responsibilities .

6) Rs 1 lakh corona insurance to be provided for free of cost for temporary and permanent government staff.

7) Money laundering framework to be practiced diligently.

8) Corona donation fund to be made transparent.

9) Administrative Expenses to be controlled and budget is curtail for the same. 

10) Inland loan will be used only in development activities.

Tax rebate:

1) Rebate on tax for those who are infected with COVID 19.

2) 20% rebate on tax for tourism sector.

3) Government will provide tax relief to medicine companies on price accretion tax

4) Medicine sales will get VAT relief from government.

5) Cottage and small industries that operate up to Rs 20 lakh, will be provided upto 75%, those that operate up to 20-50 lakh will be provided 50% and finally those that operate up to 50 lakh to 1 crore wil be provided 25% tax discount.

6) Film industry will get extension on their loan interest.

7) PPE used in sanitary will get tax subsidy.

8) Cigarettes and tobacco related products' tax have increased

9) Gold related products' tax have been increased

10) No income tax for self operated drinking water institute.

11) Tax can be paid via mobile devices by small tax payers.