Kathmandu, May 29
Finance Minister Prakash Sharan Mahat on Monday presented the annual budget plan for the next fiscal year 2023/24 in a joint meeting of the House of Representatives and the National Assembly.
The Nepal budget 2023/24, which has a total size of Rs 1.751 trillion, has many ambitious programmes whereas it also repeats some unimplemented programmes from past years. Of this, 65.20 per cent is allocated for recurrent expenditures, 17.25 per cent for capital expenditures, and 17.55 per cent for financing.
The minister said the government would collect Rs 1 trillion and 248 billion in revenues the next year. Likewise, foreign grants, foreign loans and internal loans would contribute Rs 49 billion, Rs 212 billion and Rs 240 billion respectively.
In the first budget plan following the federal elections in November last year, the government has proposed some populist programmes hoping they would help the current ruling alliance get more popular.
Despite the critical economic situation, the government has targeted achieving economic growth of 6 per cent next fiscal year. Likewise, the government says inflation will be controlled within 6.5 per cent.
Here are key things you should know about each sectoral allocation of the Nepal budget 2023/24.
Special announcements
- Each member of the House of Representatives to be provided with Rs 50 million for the constituency development programme; Rs 8.25 billion allocated for this programme in total
- All types of revenues can be paid with QR codes
- Busy government offices to be operated in two shifts
- No specific raise in employees’ salary; the recommendations of the Salary Commission to be implemented gradually
Measures for expense control
The government would make the following arrangements to reduce expenses:
- 20 government agencies that are non-operational to be scrapped; public utilities to be operated in a company model; strategic partners to be invited in problematic public utilities
- No new buildings and vehicles unless necessary
- No additional motivational allowances
- No foreign trips unless necessary
- No additional positions to be created
Innovation, invention and investment
- Rs 7 billion for the drive towards an independent economy
- Rs 1 billion for innovation, invention research
- At least 1 per cent of the annual budget to be spent on innovation, invention and research
- Rs 1.25 billion for startups
- A company can be established with a capital of just Rs 100
- Make in Nepal and Made in Nepal initiatives to be promoted
Agriculture
- Agricultural grants to be decided based on productions
- Rs 3.22 billion for the Prime Minister Agriculture Modernisation Project
- The production of native indigenous crops to be promoted
- Rs 30 billion for a grant for the purchase of chemical fertiliser
- Rs 470 million for the expansion of technical support in the agricultural sector
- Rs 1.2 billion for promoting youth in the agricultural sector
- Marijuana cultivation to be considered for medicinal purposes
- Rs 58.98 billion for the agriculture sector in total
Forest and environment
- Rs 1.05 billion for the President Chure Conservation Project
- The use of paper and cloth bags instead of plastic bags
- Rs 15.56 billion for the sector in total
Land management
- Around 25,000 landless people to be given land acquisition certificates
- Land plotting halted for the last few years to be allowed
- Rs 7.24 billion for the sector in total
Industry, commerce and supplies
- Rs 33 billion for the expansion of industrial districts
- Rs 540 million for the development of special economic zones
- Rs 410 million for the development of industrial villages
- Rs 1.02 billion for the development of micro-entrepreneurship projects
- Water from the Himalayas to be exported
- Foundations to be prepared for the export of stones and gravel, without hampering the environment
- Rs 9.46 billion for the Ministry of Industry, Commerce and Supplies in total
Labour, employment and social security
- Rs 5.94 billion for the Prime Minister Employment Programme
- Foreign employment returnees to be encouraged to launch entrepreneurship in Nepal
- Contribution-based social security programme to be promoted
- Rs 8.08 billion for the Ministry of Labour, Employment and Social Security in total
Culture, tourism and civil aviation
- 2023-2032 to be celebrated as the Visit Nepal Decade
- Visit Nepal: Know Nepal campaign to promote domestic tourism
- Great Himalayan Trail to be constructed
- Himalayan Monastery Preservation Programme targeting over 100-year-old monasteries
- The reconstruction of the cultural monuments affected by the 2015 earthquake to be expedited
- The Civil Aviation Authority of Nepal (CAAN) to be unbundled to establish regulatory and service agencies
- Efforts to be made for regular international flights from/to Pokhara and Bhairahawa airports
- Rs 2.13 billion for the tourism sector in total
- Rs 11.96 billion for the Ministry of Culture, Tourism and Civil Aviation in total
Education, science and technology
- Rs 3.02 billion for the scholarships at different levels
- Rs 8.45 billion for the school day meal programme; junk food to be prohibited in the programme
- Rs 1.42 billion for free sanitary pads at schools
- Medical colleges to be established in Butwal, Surkhet and Dadeldhura among other places
- Rs 197.29 billion for the Ministry of Education, Science and Technology in total
Health and education
- Rs 460 million for controlling communicable, vector-borne and infectious diseases
- Shukraraj Tropical and Infectious Disease Hospital to be expanded to 300 beds
- Rs 460 million for the operation of provincial infectious disease hospitals
- Rs 1.28 billion for free medicines
- Rs 8 billion for local-level hospitals
- The burn unit at Bir Hospital to be upgraded as a well-facilitated burn centre
- Geta Medical College to be operated as the Martyr Dasharath Chand Academy of Health Sciences
- Kidney transplant services and mental health services to be available at all federal hospitals
- Rs 83.99 billion for the Ministry of Health and Population in total
Water supply
- Melamchi Water Supply Project to be expanded, water supply in the Kathmandu valley to be ensued round the year
- Hitis and ponds in Kathmandu to be preserved
- Wastewater treatment plants to be operated in Kathmandu
- Rs 28.16 billion for the Ministry of Water Supply in total
Youth and sports
- Self-employment loans for players
- Kirtipur cricket ground to be updated to the international level
- Dhangadhi, Itahari, Pokhara and Nepalgunj to boast provincial stadiums
- Local governments to be supported to carry out various sports activities
Women, children and senior citizens
- All forms of child labour and exploitation to be ended
- Public services to be made disabled-friendly
- Women at risk during childbirth to be rescued by helicopters under the President Women’s Rescue Programme
Social security
- 68-year-year-old and older to get Rs 4,000 monthly allowance
- Major social security programmes to continue in an integrated way to avoid duplication
- Rs 157.72 billion for social security in total
Transport infrastructure
- Rs 31.02 billion for the widening and upgrading of the East-West Highway
- Rs 3 billion for the Mid-Hill Highway
- Rs 3.39 for the Postal Highway
- Rs 2.41 billion for the Madan Bhandari Highway
- Rs 22.5 billion for the Kathmandu-Terai fast track
- Allocations for different corridor roads
- Rs 5.13 billion for the Kathmandu-Nagdhunga tunnel
- Rs 5.42 billion for the Mugling-Pokhara road upgrading
- Rs 2.08 billion for the construction of 150 bridges
- Rs 2.07 billion for the expansion of Kathmandu Ring Road
- Rs 131 billion for the Ministry of Physical Infrastructure and Transport
Urban development
- Cycle lane to be built in Sauraha of Chitwan
- Rs 1.26 billion for providing residences to homeless people
- The new building of the federal parliament to be ready next year
- Settlements of landless people on riverbanks of Kathmandu to be removed
- Building code to be revised
- Support to be extended for the development of infrastructure for the Lumbini provincial capital capital
- Rs 2.15 billion for connecting centres of local governments to the road network
Energy, water resources and irrigation
- Rs 4.17 billion for the Sunkoshi Marin irrigation project
- Rs 1.65 billion for river control projects
- Electricity to be made accessible to all households in the next 2 years
- Per-person electricity consumption to be increased
- Rs 900 megawatts to be added to the national transmission line; total capacity to reach 3,600 megawatts
- Rs 1.74 billion for the promotion of alternative energy
- Rs 38.32 billion for the improvements in electricity distribution systems
- Rs 87.45 billion for the Ministry of Energy, Water Resources and Irrigation in total
Communications and information technology
- National cyber security centre to be operated
- Postal service to be restructured
- Postal saving bank to be scrapped after transferring accounts to A-grade government banks
- Nepal to be developed as a filming hub; indoor studios to be built in Kavre and Dolakha
- Rs 7.71 billion for the Ministry of Communications and Information Technology in total
Climate change and disaster reduction and management
- Special climate projects to be launched in 43 local governments
- Disaster-hit and disaster-vulnerable populations to be relocated
Security and defence
- Digital forensic lab to be upgraded
- Central jail to be relocated to Nuwakot
- Police adjustment to be completed
