Minister for Finance of Nepal Dr. Yuba Raj Khatiwada had presented the budget estimates for the fiscal year 2020/21 on the federal parliament.
The government has presented an annual budget of Rs 1.47 trillion for the fiscal year 2020/21. which was Rs 1.53 trillion last year.
The major highlights of Nepal Federal Budget 2020/2021 Major Highlights by Areas are listed as follows :
- Rs 352.91 billion for capital expenditure
- Rs 948.94 billion for recurrent expenditure,
- Rs 172.79 billion for financing.
- Rs 889.62 billion will be financed from revenue,
- Rs 60.52 billion from foreign grants,
- Rs 299.5 billion from foreign loans, and
- Rs 225 billion from internal loans.
Budget Allocation in Major Sectors in Nepal Budget 2020/2021
BUDGET IN HEALTH for fiscal year 2020/21
The budget in the health sector for this year is 90.69 billion while it was Rs 68.78 billion in last year. There was an increase in budget in the health sector, prioritizing the prevention and control of the coronavirus pandemic (COVID-19).
INCREASE FOR PM EMPLOYMENT PROGRAM
The budget for the Prime Minister Employment Program has been doubled to 11.60 billion to which Last year was Rs 5.1 billion
This program has target to create 60,000 jobs. the government will create at least 200,000 jobs under the employment program.
Major infrastructure Budge on Road Building
Road is nations one of pillar for development of whole Nepal. Nepal government has allocated bigger figure of the budget for building the infrastructure of road and its branches locally and nationally.
The major highlights on the constructions and infrastructure building of Nepal on this popular budget is listed as follows :
High Priority on AGRICULTURE
Special Priority on Energy Sector
This Year budget has given special priority to the energy sector . Different goal has been set to complete ongoing hydropower projects. Major highlights of the budget on energy sector are as follows :
AVIATION INFRASTRUCTURE Tourism
A budget of Rs 19.42 billion for the expansion of the aviation sector infrastructure has been allocated for the buildup of the Aviation Infrastructure and tourism Sector.
Budget on WATER SUPPLY and Climate
The government has a budget of Rs 5.46 billion for the Melamchi Drinking Water Project. This project aims to complete the groundwork of the project this year and initiate distributing drinking water in the Kathmandu Valley from the beginning of the upcoming fiscal year.
A budget Rs 5.89 billion has been set aside for Kathmandu Upatyaka Khanepani and sewerage systems.
Likewise, Rs 6 billion has been allotted for the completion of under-construction climate change adaptation and lift and sub-projects in dry areas, the minister said.
LAND BANKS IN 300 LOCAL LEVEL UNITS
The government will establish land banks in 300 local levels in the next fiscal year with collaboration with the State and local level governments,
It will target the youths who will be returning home confined to the rural parts of the country due to the pandemic.
The government will any barren land as well as government-owned land for the purpose. The land will be leased out to those who wish to do farming and cultivation.
Such individuals or agencies will receive agro tools as incentives from the government. A budget of Rs. 500 million has been allocated for share investment in the land banks.