Kathmandu: The government’s estimate of income and expenditure for the upcoming fiscal year 2079-80 BS (2022-23) has been presented in the House.
Minister for Finance Janardan Sharma is now presenting the budget before a joint session of the Federal Parliament.
Prior to this, Speaker Agni Prasad Sapkota granted permission to the Minister to present the budget before the House at 4:00 pm today. The budget was endorsed by the Council of Ministers before its presentation in the House.
It may be noted that President Bidya Devi Bhandari had on May 24 presented the government’s new policies and programs for the upcoming fiscal year in the joint session of the House and they were passed by the House of Representatives on Saturday. The government generally announces the budget being based on its policies and programs for the given time. The Economic Survey was also unveiled on Saturday.
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Revenue collection is estimated to be Rs. 1,152.42 billion in the current fiscal year. National Campaign for Agricultural Production Year will be launched next year for self-reliance: Minister Sharma
Objectives and priorities
The overall objective of the budget is to achieve stability, productivity, and employment growth through inclusive development, self-reliance and economic prosperity. Based on this the following objectives have been set:
Creating a production-based economy to achieve high and sustained growth
Employment generation through integrated utilization of natural resources, labor force, capital and technology
Maintain fiscal discipline
Limit inflation within the required ceiling
Maintain financial stability
Create a base for a balanced, inclusive, self-reliant, and socialism-oriented economy through economic and social transformation
Announcement of Farmer Pension Scheme under Government Program with Farmer.
Brief scenarios of the current fiscal year:
A growth rate of 5.8 percent is predicted, but Minister Sharma said it is challenging to achieve due to the second wave of Covid-19. Nepal’s GDP per capita increased to USD 13,811. Inflation stands at 37.3 percent by the first nine months of the current FY.
Budget’s overall direction:
The budget is prepared to mark a departure from import to production, from risk to economic stability, and exclusion to inclusion: says FM Sharma
It is imperative to create an independent, prosperous and self-reliant economy in order to achieve the goal of a socialism-oriented economy set by the constitution of Nepal: FM Sharma
The budget is focused to uplift the status of people living below the poverty line regardless of the class, geography, gender, caste and community: FM Sharma
Finance Minister pledges paradigm shift through budget
Minister for Finance Janardan Sharma has said the budget for the upcoming fiscal year 2022-23 is a take-off point towards the production economy from an import one and towards inclusion from exclusion.
While announcing the budget in the joint session of the Federal Parliament today, the Finance Minister said the nation’s economy was on the path of recovery after the Covid-19 crisis and the revenue collection in the current fiscal year was satisfactory.
Poverty alleviation and maximum utilization of available natural assets and capital mobilization to create jobs are the priorities of the budget that focused on promoting a production-based economy, according to the Minister who said, “Agriculture, tourism, industry and energy are the special priorities of the budget.”
Through the budget, the government targets to minimize the imports of grains: rice, maize and wheat by 30 percent. In addition to this, it plans to establish 100 food warehouses across the country and implement the ‘farmers’ pension program’. For the seed capital of this program, it has decided to allocate a budget of Rs one billion.
Enhancement of fiscal discipline, the transformation of agricultural sectors, innovation-based economic development, recovery of tourism sectors, promotion of the hydropower sector, and effective administrative service are other commitments of the budget.
Govt aims to reduce imports of paddy, maize, wheat and vegetables by 30 percent
The government has taken a policy to reduce the import of basic agricultural produce from the forthcoming budget.
Presenting the budget for the fiscal year 2022/23 in the Parliament on Sunday, Finance Minister Jarnadan Sharma said that the import of paddy, maize, wheat and vegetables would be reduced by 30 percent.
Rs 55.97 billion budget to the Ministry of Agriculture
The government has allocated Rs. 55.97 billion to the Ministry of Agriculture. Presenting the budget for the coming Fiscal Year in the Parliament, Finance, Minister Janardan Sharma stated that the amount has been allocated.
Rs 5.90 billion allocated for agriculture modernization project
A total of 5.90 billion has been allocated for agriculture modernization projects in the budget for the coming fiscal year, said Minister for Finance Janardan Sharma.
The budget states, “The next fiscal year will be a national campaign year for self-reliance. Rural areas of Nepal will be developed as centers of agricultural production. A total of Rs 5.90 billion has been allocated for the agriculture modernization project.”
It is also mentioned in the budget that facilities like seeds, fertilizers, and irrigation will be provided to the farmers.
The government has allocated Rs 10.41 billion for the Ministry of Industry, Commerce and Supplies.
Rs 2 billion allocated to reconstruct heritage sites damaged by the 2015 Gorkha Earthquake.
Minimum limit for foreign investment reduced
The government has lowered the minimum limit for foreign investment to Rs 20 million. At present, the limit is Rs 50 million.
Presenting the budget for the Fiscal Year 2022/23, Finance Minister Janardan Sharma said that arrangements have been made for the approval of foreign investment up to Rs 100 million through an automatic system.
The government has allocated Rs 9.38 billion for the tourism sector. A total of Rs 2.20 billion has been allocated to upgrade the Tribhuvan International Airport.
Rs 13 billion allocated to the Ministry of Forests and Environment.
The government has allocated Rs 7.05 billion for the Prime Minister’s Employment Program.
Govt includes Nijgadh airport in new budget
The government has included the construction of Nijgadh International Airport in the new budget despite the verdict from the Supreme Court not to construct the airport.
Finance Minister Janardan Sharma has made public the plan to move ahead with the project through the Investment Board.
The Finance Minister also announced bringing Gautam Buddha and Pokhara airports into full operation. The budget has also been allocated to manage air traffic at Tribhuvan Airport and to construct a second terminal building at Gautam Buddha International Airport.
The government has allocated Rs 69.38 billion from the Ministry of Health and Population. Likewise, the government has decided to allocate Rs 6.36 billion for health services in provinces, and Rs 27.44 billion to local units.
Rs 10 billion allocated to construct hospitals at local levels
The government has allocated Rs 10 billion for 655 hospitals under construction at local levels. Finance Minister Janardan Sharma announced that the construction of the hospitals will be completed in the coming fiscal year. Finance Minister Sharma also said that the old dilapidated hospital buildings would be renovated. According to Finance Minister Sharma, senior citizen wards will be brought into operation in 20 hospitals to provide specialized health services to senior citizens.
Senior citizens above 68 years to get social security allowance. The government will honor persons who declare not to receive social security allowance.
Govt announces to construct separate hospital for teachers
The government has announced to construct a separate hospital for teachers. Finance Minister Janardan Sharma made the announcement in his budget speech for the fiscal year 2022/23.
Minister Sharma said that the construction work would start in the next fiscal year even though it was announced in the previous budget to open a hospital for teachers.
Rs 2.46 billion budget allocated to the Ministry of Youth and Sports
The government has allocated Rs 2.46 billion to the Ministry of Youth and Sports.
Finance Minister Janardan Sharma while presenting the budget for the coming Fiscal Year in the Parliament stated that the construction of Mulpani Cricket Stadium will be completed this year, Kirtipur Stadium to be upgraded to host night games and the government will take over Gautam Buddha International Cricket Stadium in Chitwan.
Rs 30 billion allocated for Kathmandu-Terai Fast Track
The government has allocated Rs 30 billion for Kathmandu-Terai Fast and aims to complete the project in the next three years.
While presenting the new budget, Finance Minister Sharma said that Rs 7 billion has been allocated for road maintenance, a tunnel will be constructed at Siddhababa and underpasses will be started in Koteshwor and New Baneshwor of Kathmandu.
Likewise, Rs one billion has been allocated for Kalanki-Maharajgunj Ring Road expansion, Rs 10 billion for Naubise-Muglin road expansion, and Rs 300 million for the expansion of the East-West Highway.
The government has allocated Rs 161.56 billion to the Ministry of Physical Infrastructure and Transport.
Electric stoves for each household
The government has announced to distribute electric stoves to all households. Presenting the budget for the coming fiscal year on Sunday, Finance Minister Janardan Sharma said that a campaign would be launched to distribute ‘one house, one electric stove subsidy’ through the local level.
Salary of civil servants increased by 15 percent
The government has increased the salary of government employees by 15 percent per month. Finance Minister Janardan Sharma said that the decision was taken to boost the morale of the employees.
The dearness allowance will be continued, he added.
Govt announces change in income tax slab. Only one percent tax will be levied on singles on income up to Rs 500,000 annually and up to Rs 600,000 for couples.
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