Finance Minister Bishnu Paudel has unveiled the government’s budget for FY 2016/17, in Parliament. According to the budget speech, the government plans to spend around Rs 1.048 trillion in the new fiscal. While around Rs.300 billion has been allocated as capital expenditure and the rest as general expenditure.

 

1.

Public servants get 25 per cent raise

The government has decided to give public servants a raise of 25 per cent in the new fiscal year. After the raise, a government officer’s monthly pay, which was Rs 24,400 earlier, has not reached Rs 30,500. Although the raise brings relief to the public servants who last had an increment two years ago, it is likely to increase market prices.

 

2.

Minimum taxable income raised to Rs 350k

The government has also increased the minimum taxable income amount. Under the new tax slab, a single man or a woman would have to pay just 1 per cent tax if he she earns less than Rs 350,000 a year. In case of married people, the slab has been raised to Rs 400,000.

 

3.

Petrol, diesel dear by Rs 5

The government has decided to impose 5 per cent infrastructure tax on petrol and diesel to fund the Budhi Gandaki hydro project. This means that you would have to pay Rs 5 extra on every litre of petrol or diesel you buy.

 

4.

Compulsory insurance for private buildings

The government has announced that it will make insurance for private buildings compulsory. This is likely to hurt the finances of people on limited income. The decision comes in the wake of the massive quake that rocked Nepal in April 2015.

5.

Solar power compulsory for new houses in Kathmandu

If you are thinking of building a house in Kathmandu, then your plans should indicate where you are going to fit in a solar power system. The government has announced that all new buildings in Kathmandu must have a solar power system.