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Nepal budget 2022/23: Everything you need to know about Rs 1.79-trillion expense plan

Finance Minister Janardan Sharma presents the annual budget plan for the fiscal year 2022/23, in Kathmandu, on Sunday, May 29, 2022. Photo: Chandra Bahadur Ale
Finance Minister Janardan Sharma presents the annual budget plan for the fiscal year 2022/23, in Kathmandu, on Sunday, May 29, 2022. Photo: Chandra Bahadur Ale

Kathmandu, May 29

Finance Minister Janardan Sharma on Sunday presented the annual budget plan for the next fiscal year 2022/23.

The budget plan, which has a total size of Rs 1.793 trillion, has many ambitious programmes whereas it also repeats some unimplemented programmes from past years. Of this, 42 per cent is allocated for recurrent expenditures, 21 per cent for capital expenditures, 12.8 per cent for financing, and 24 per cent for grants to provincial and federal governments.

As the country is heading towards provincial and federal elections, the budget statement has prioritised election activities. Likewise, the government has proposed some populist programmes hoping they would attract more votes for the ruling alliance in the next elections.

Despite the critical economic situation, the government has targeted achieving economic growth of 8 per cent next fiscal year. Likewise, the government says inflation will be controlled within 7 per cent.

Here are key things you should know about each sectoral allocation of the budget plan.

Agriculture

budget
Nepal’s agriculture is heavily dependent on natural weather, making it more vulnerable to climate change. In the photo, farmers are planting rice in the monsoon of 2021. Photo: Bikash Shrestha

The government says all wards across Nepal will have agriculture technicians. The government will ensure an easy supply of fertiliser and seeds to the farmers.

  • Rs 10 billion for agricultural projects to be rolled out in partnership with local and provincial governments
  • Rs 5.9 billion for agriculture modernisation
  • Rs 1 billion for the seed money of Farmers Interest Fund (Farmers’ pension fund)
  • Rs 15 billion for fertiliser purchase
  • Rs 810 million for grants to sugarcane farmers
  • Rs 55.97 billion for the agriculture sector in total

Domestic production

  • Rs 3.45 billion for domestic production promotion
  • Rs 260 million for business incubation centres, one each in seven provinces
  • Rs 3.89 for industrial infrastructure development
  • Rs 20 million as the threshold for foreign direct investment
  • 2-10% discount on electricity costs for industries promoting domestic productions
  • Rs 10.48 billion for the Ministry of Industry, Commerce and Supplies in total

Culture and tourism

Community dances of Nepal
Photo: Wikimedia Commons
  • The government hopes to welcome one million additional foreign tourists this year
  • Rs 2 billion for remaining post-earthquake reconstruction
  • Rs 330 million for constructing the Great Himalayan Trail
  • Sherpa museum in Solukhumbu, Newa museum in Kathmandu, and Gurung museum in Pokhara
  • Rs 9.38 billion for tourism development in total

Aviation

  • Rs 2.2 billion for the second terminal of the Kathmandu airport
  • Unbundling of the Civil Aviation Authority of Nepal into two bodies
  • Rs 12.24 billion for aviation infrastructure development
File: A Nepal Airlines (NAC) aircraft
File: A Nepal Airlines (NAC) aircraft

Land

  • Only registered companies to be allowed to operate the real estate business, to begin with, in metropolitan and sub-metropolitan cities this year
  • Rs 7.04 billion for the Ministry of Land Management, Cooperatives and Poverty Alleviation in total

Forest and environment

  • Rs 2.17 billion for the President Chure Conservation Programme
  • Rs 13 billion for the Ministry of Forests and Environment in total

Labour and employment

  • Rs 7.05 billion for the PM’s Employment Programme. The programme will be restructured.
  • Foreign employment returnees to be encouraged to work at home
  • All local governments to be declared child labour-free gradually
  • Rs 9.13 billion for the Ministry of Labour, Employment and Social Security in total

Health

Representational image
  • Rs 10 billion for basic health service centres at the local level
  • Rs 1.5 billion for allowances to people living with chronic diseases such as cancer and kidney problems
  • Rs 5,000 nutrition allowance for new mothers in selected 25 districts
  • One doctor: one hospital programme
  • Rs 100 million for a free kidney transplant programme for the underprivileged
  • Rs 200 million for dialysis machines at provincial hospitals
  • Rs 7.5 billion for the health insurance programme
  • Blood banks in all provinces
  • Rs 69.38 billion for the Ministry of Health, Rs 6.36 billion for provincial health authorities and Rs 27 billion for local ones

Education

Tangal School Classroom Nepal space flight
An aerospace session at Tangal Secondary School. Photo: NEAR Aerospace
  • Rs 8.88 billion for the President Education Reform Programme, 1,200 schools to benefit
  • Day-meal programme extended up to grade 6, to be upgraded up to grade 8 later.
  • Rs 8.3 billion for technical and vocation education
  • Reservation for foreign students and easy visa services for them
  • Procedure to begin to open a medical college in Dadeldhura, PM Deuba’s home district
  • Medical colleges to be established outside Kathmandu also
  • Research centres at TU and other universities to receive additional funds
  • Rs 70.05 billion for the Ministry of Education, Rs 5.32 billion for education at the provincial level, and Rs 121.01 billion at the local level

Drinking water

  • Rs 1 billion to extend Melamchi drinking water pipelines outside Kathmandu Ring Road
  • Melamchi Drinking Water Development Board dissolved, and the Department of Water Supply to take over
  • Rs 4.44 billion for urban drinking water projects
  • Rs 37.35 billion for the drinking water sector in total

Social security

  • The elderly allowance threshold reduced to 68 years
  • People volunteering to not receive the social security allowances to be honoured
  • Rs 134.01 billion for social security allowances in total

Youth and sports

  • High-altitude sports and training centre in Jumla
  • The construction of Mulpani cricket stadium to be over this year, Kirtipur stadium to be upgraded to host nighttime events, and Gautam Buddha International Cricket Stadium to be taken over by the local and provincial governments
  • Rs 870 million for sports infrastructures
  • Rs 2.09 billion for the National Sports Council
  • Rs 2.46 billion for the Ministry of Youth and Sports in total

Women, children and senior citizens

  • One electric stove as a grant to each family
  • Nepali sign language to be developed
  • Sign language and Braille textbooks to be available for free
  • Rs 5,000 monthly allowance to people suffering from kidney diseases, spinal injury and cancer
  • Rs 1.77 billion for the Ministry of Women, Children and Senior Citizens in total

Infrastructures

  • Kathmandu-Chitwan fast track
  • Rs 30.05 billion for the East-West Highway expansion
  • Rs 30 billion for the Kathmandu-Terai fast track
  • Rs 2.91 billion for the Madan Bhandari Highway
  • Rs 7 billion constituency strategic roads
  • Rs 1 billion for Kathmandu Ring Road expansion
  • Flyover at Satdobato and underpass in Koteshwar-Baneshwar in Kathmandu
  • Rs 1.19 billion for tunnel development
  • Rs 10.63 billion for road development in total, additional Rs 7 billion via the Road Development Board
  • Rs 6.53 billion for railway projects
  • Rs 161.56 billion for the Ministry of Physical Infrastructure and Transport in total

Energy

  • 715 megawatts of electricity to be added to the national transmission line
  • Licences of Covid-hit hydropower projects to be extended by up to two years
  • 50 new charging stations for electric vehicles
  • Public utilities required to buy electric vehicles
  • Rs 43.65 billion for electricity infrastructure development
  • Singhadurbar to be free of gas cylinders to promote electric stove usage, and metropolitan and sub-metropolitan cities to follow suit
  • Rs 75.1 billion for energy development in total

Water resources and irrigation

  • Rs 33.5 billion for water resources and irrigation in total

Information and communications

  • Intent costs to go down
  • Dolakha film city project in Dolakha, an indoor studio in Kavre
  • Rs 8.59 billion for the Ministry of Communications and Information Technology

Urban development

  • Four evacuation parks in Kathmandu for disaster response
  • House pulling policy to manage old settlements in Kathmandu
  • Dharahara construction to be complete next year
  • Rs 9.44 billion for post-earthquake reconstruction
  • Rs 37.73 billion for the Ministry of Urban Development

Local development

  • Rs 2 billion to make sure all local unit centres are connected with provincial capitals in three years
  • Department of Local Development dissolved, the staff to be transferred to the Ministry of Federal Affairs and local units
  • Rs 25.03 billion for the Ministry of Federal Affairs and General Administration, Rs 6.35 billion for local governments, and Rs 5.6 billion for the local level

Climate change and disaster risk management

Dhye_Climate change
  • Rs 1 billion for the National Disaster Risk Reduction and Management Authority

Finance

  • Rs 13.59 billion for subsidised loans
  • One family: one insurance programme
  • Employees Provident Fund and Citizens Investment Trust to prioritise investments in productive sectors such as agriculture
  • Reservation for NRNs in the stock market

Peace process

  • Rs 1.4 billion to complete pending tasks of the peace process
File: Ministry of Finance

Peace and security and foreign affairs

  • National id card for all citizens in the next two years
  • E-passport and consular services to be made easier

Other major allocations

  • Funds allocated for provincial and federal elections
  • 15% hike in civil servants’ salary
  • No vehicles will be purchased for government offices

Tax-related provisions

  • A major change in tax rates: 1% for up to Rs 500,000 annual income (singles) and Rs 600,000 (married)
  • 90% discount on sanitary pad customs charge

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