The budget speech for the fiscal year 2081/82 was presented by Hon. Barshaman Pun, the sitting Minister of Finance, before a joint session held at the House of Representatives on Jestha 15, 2081 B.S. The document outlines the financial planning, revenue generation, and expenditure allocations for the upcoming fiscal year.

Total Budget Overview

• Total Budget: NPR 18 Kharba 60 Arba 30 Crores (approximately USD 13.76 billion)
• Recurrent Expenditure: NPR 12 Kharba 60 Arba 30 Crores (67.7%)
• Capital Expenditure: NPR 5 Kharba 47 Arba 67 Crores (29.4%)

Fiscal Management

• Recurrent Expenditure includes wages, salaries, goods and services, and consumption of fixed capital.
• Capital Expenditure includes the development of machinery, equipment, buildings, health facilities, education, and other fixed assets.
• Fiscal Management involves debt servicing, managing government bonds and securities.

Sources of Revenue

• Tax Revenues: NPR 12 Kharba 60 Arba 30 Crores (67.7%)
• Foreign Grants: NPR 52 Arba 33 Crores (2.9%)
• Domestic Borrowings and Foreign Loans: NPR 5 Kharba 47 Arba 67 Crores (29.4%)

Budget Deficit

• The government plans to cover the remaining deficit through foreign loans and domestic borrowings.
• Debt to GDP ratio is approximately 10%, a significant increase from previous years.

Key Assumptions and Targets

• GDP Growth: Estimated at 6%, actual at 3.9% at the end of FY.
• Inflation Rate: Estimated at 6.5%, actual at 4.6% as of April 2024.

Key Figures

• Poverty Rate: 20.3%
• Average Life Expectancy: 76.3 years
• Literacy Rate: 76.2%
• Access to Electricity: 98%
• Access to Roads: All districts
• Debt to GDP Ratio: 44.3%
• Per Capita Income: $1,456
• Electricity Production: 3,600 MW
• Human Development Index (HDI): 0.602
• Foreign Exchange Reserves: Sufficient to cover 12.5 months of goods and services imports.
• Balance of Budget: Surplus by NPR Kharba 65 Arba.

Federalism and Fiscal Transfer

• Revenues generated at the province and local levels: NPR 1 Kharba 59 Arba
• Fiscal transfer to the province and local levels: NPR 5 Kharba 67 Arba
• Net Fiscal transfer: NPR 4 Kharba 8 Arba

Priority Areas for Growth

1. Economic reforms and private sector promotion.
2. Agriculture, energy, IT, tourism, industrial development, and infrastructure construction.
3. Development of social sectors, including education and health.
4. Inclusion and social security.
5. Good governance and public service delivery improvement.

Transformative Areas Identified by the Budget

1. Transformation of the agricultural sector.
2. Energy sector development.
3. Information Technology (IT) development.
4. Tourism promotion.
5. Entrepreneurship and industrial development.

Ministry-wise Budget Allocation

• Ministry of Industry, Commerce and Supplies: NPR 9 Arba 27 Crores
• Ministry of Energy, Water Resources, and Irrigation: NPR 50 Arba 74 Crores
• Ministry of Forests and Environment: NPR 15 Arba 70 Crores
• Ministry of Land Management, Cooperatives, and Poverty Alleviation: NPR 6 Arba 82 Crores
• Ministry of Labour, Employment, and Social Security: NPR 8 Arba 10 Crores
• Ministry of Education, Science, and Technology: NPR 2 Kharba 3 Arba 66 Crores
• Ministry of Health and Population: NPR 86 Arba 24 Crores
• Ministry of Water Supply and Sanitation: NPR 23 Arba 63 Crores
• Ministry of Youth and Sports: NPR 3 Arba 50 Crores
• Ministry of Communication and Information Technology: NPR 7 Arba 35 Crores
• Ministry of Women, Children, and Senior Citizens: NPR 1 Arba 60 Crores
• Ministry of Physical Infrastructure and Transport: NPR 1 Kharba 50 Arba 53 Crores
• Ministry of Culture, Tourism, and Civil Aviation: NPR 11 Arba 91 Crores
• Ministry of Urban Development: NPR 92 Arba 63 Crores
• Ministry of Agriculture and Livestock Development: NPR 57 Arba 29 Crores
• Ministry of Defence: NPR 59 Arba 87 Crores
• Ministry of Home Affairs: NPR 1 Kharba 99 Arba 24 Crores
• Ministry of Foreign Affairs: NPR 6 Arba 77 Crores
• Ministry of Water Resources and Irrigation: NPR 36 Arba 81 Crores
• Ministry of Law, Justice, and Parliamentary Affairs: NPR 54 Crores 53 Lakhs

Sector-wise Budget Highlights

Education

• Unified University Act for uniformity in universities.
• Budget of NPR 1 Arba 59 Crores for technical education.
• Utilization of school infrastructures for skills training and employment.
• Industry-academia interface programs.

Agriculture

• NPR 2 Arba 98 Crores for Prime Minister Agriculture Modernization Project.
• NPR 27 Arba 95 Crores as a subsidy for fertilizers.
• Legal arrangements for commercial marijuana production for medicinal use.

Energy

• Addition of 900 MW of electricity to the national grid.
• Export arrangements for electricity to Bangladesh.
• Investment in various hydropower projects.

Information Technology (IT)

• 10-Year IT Plan aiming to export 30 Kharba in IT services.
• Legal framework for AI adoption and development.
• Establishment of IT Parks and government data center.

Tourism

• Aim to attract 16 Lakhs tourists next year.
• Construction of Nijgadh International Airport via PPP.
• Automation of mountaineering permits.

Entrepreneurship and Industries

• Establishment of innovation hubs and business incubation centers.
• Legal arrangements for local product branding and marketing.

New Public Funds

• Peace Fund: NPR 100 Crores
• Nepal Start-up Fund: NPR 100 Crores
• Research and Development Fund: NPR 100 Crores
• Sovereign Wealth Fund: NPR 1,100 Crores for concessional loans.

Tax Amendments

• Green tax on petrol, diesel, furnace oil, and lubricant oil.
• VAT registration threshold increased to 30 lakhs.
• Duty exemptions for sustainable farming and animal husbandry.

Other Major Highlights

• Promotion of Janakpur and Lumbini as wedding and birthing hubs respectively.
• Establishment of a commercial farm for wild animals in Himalayan areas.
• "One Ward One Park" initiative.
• No salary increment for government employees.
• Returnee entrepreneurship program for at least 1 Lakh returnees.