Budget 2076-77 is an expansionary budget, which was presented by Finance Minister Dr. Yubraj Khatiwoda on 15th Jestha 2076. This budget aims to achieve an economic growth rate of 8.5%, inflation target at 6%, and employment generation for 5 lakhs Nepalese by the end of the FY 2076-77.
Objectives, and Policies and Programs
- The major objectives of Budget 2076-77 are
- Uplift of living standard,
- Economic growth backed by social justice, and
- Economic, physical, and social infrastructure development with an aim to upgrade to a middle-income country by 2030, and to build the foundation for the prosperous socialism-oriented economy.
- Major Policies, Programs, and Procedures to achieve the objectives are
- Eradication of absolute poverty, and rapid uplift of living standard of marginalized sectors, groups, and community with prior focus on social security,
- Enhancement of productive capacity, domestic capital formation through a transformation of social, local, and cooperative sectors,
- Quality education, health facilities, drinking water; economic infrastructure development for agriculture, industry, tourism, and the like,
- Rule of law, the effectiveness of public services, good governance backed by accountability and active public participation.
Revenue Source Identification
- Government revenue: RS. 9 Kharba 81 Arba 13 Crores 83 Lakhs
- Foreign Grants: RS. 57 Arba 99 Crores 55 Lakhs
- Foreign borrowing: RS. 2 Kharba 98 Arba 83 Crores 33 Lakhs
- Domestic borrowings: RS. 1 Kharba 95 Arba
- Budget 2076-77 stands at RS. 15 Kharba 32 Arba 96 Crores 71 Lakhs, which is 28% higher than the Budget 2075-76.
- Current Expenditure amounted to RS. 9 Kharba 57 Arba 10 Crores 14 Lakhs (62.4%)
- Capital Expenditure amounted to RS. 4 Kharba 8 Arba 59 Lakhs (26.6%).
- Financial Expenditure amounted to RS. 1 Kharba 67 Arba 85 Crores 98 Lakhs (11%).
- The economic growth rate projected at 8.5%.
- Employment prospects to 5 Lakhs citizens.
- Inflation target at 6%.
- Income tax exemption range increased to Rs. 4 Lakhs for Individual and Rs. 4.5 Lakhs for a couple.
- Tax exemption during the process of merger of Banking and Financial Institutions.
- VAT exemption in accident and health insurance.
- Capital Gain Tax (CGT) in the share market is decreased to 5%
- CGT in Real Estate is decreased to 5% (sub-metropolitan) and 10% in (metropolitan)
- Government staff salary for gazetted officers and non-gazetted officer to be increased by 18% and 20% respectively and all other incentives and facilities are kept unchanged
Central, State, and Local Level
- Equalization grant to provinces amounting to Rs. 55 Arba 30 Crores and Rs. 89 Arba 95 Crores to local bodies.
- Conditional grant to provinces amounting to Rs. 44 Arba 55 Crores, and RS. 1 Kharba 23 Arba 87 Crores.
- Expected revenue sharing of Rs. 1 Kharba 30 Arba 89 Crores in Provinces and Local levels.
- Equitable grant for provinces and local level amounting to Rs. 10 Arba.
Major Policies for the Fiscal Year 2076-77
- 1 Kharba 63 Arba 76 Crores for Education, Science, and Technology.
- Free education up to secondary level; establishment of an informal school for students unable to join regular schooling
- Announcement of ‘Literate Nepal’ and ‘Literacy Campaign’. 70 districts to be fully literate by the end of fiscal year 2076/77.
- Establishment of President Educational Improvement Fund to uplift the quality of public schools. A decade lasting from 2076 to 2085 has been declared as the decade of ‘Improving Quality of Education in Public School’.
- 8 Arba 53 Crores for Construction of 300 additional school building.
- 3 Arba 19 Crores for School Level Scholarship.
- 1 Arba 50 Crores grant for training and development of volunteering-teachers.
- 2 Arba 21 Crores for quality improvement of study materials such as books in order to increase the effectiveness of education.
- 5 Arba 95 Crores for a day-lunch facility to schooling children in Public Schools.
- 1 Arba 10 Crores for the establishment of Madan Bhandari Science and Technology University.
- The total budget for the Health Sector amounted to Rs. 68 Arba 78 Crores.
- 2 Arba 20 Crores grant for the cure of 8 severe diseases to destitute citizens.
- 1 Arba 82 Crores for the cure of Tuberculosis, AIDS, and other sexually transmitted diseases.
- 5 Arba 57 Crores for the Hospital under construction.
- The total budget allocated for Drinking water and Sanitation amounted to Rs. 43 Arba 46 Crores.
- 7 Arba 39 Crores for Melamchi Drinking Water Project.
- Budget allocation for Labour and Employment stands at Rs. 7 Arba 14 Crores.
- 5 Arba 1 Crores for Prime Minister Employment Program.
- Total budget allocation for Social Security amounted to RS. 64 Arba 50 Crores.
- The Elderly Allowance has been increased from Rs. 2000 to Rs. 3000.
- Allowances to disabled, differently abled, single woman, and endangered indigenous groups have been increased by RS. 1000.
- Budget allocation for Women, Children, and Senior Citizen amounted to Rs. 78 Crores.
- Total budget allocation for development of Agriculture and Animal farming amounted to Rs. 34 Arba 80 Crores.
- 8 Arba 10 Crores for Prime Minister Agriculture Modernization Project.
- Budget allocation in the Irrigation Sector stands at Rs. 23 Arba 63 Crores.
- 5 Arba 73 Crores budget allocation for construction of dams in rivers such as Koshi, Narayani, Karnali, and so on.
- 15 Arba 49 Crores for Forestry and Environment.
- Budget for Land management and Cooperative sectors amounted to RS. 7 Arba 69 Crores.
- Budget allocation for Tourism stands at Rs. 22 Arba 68 Crores.
- Total budget allocation for Industry, Commerce, and Supplies stands at 11 Arba 74 Crores.
- Total Budget allocation for Energy Sector stands at RS. 83 Arba 49 Crores.
- Budget allocation for Road, Rail, and Water Transportation infrastructure development stands at Rs. 1 Kharba 63 Arba 52 Crores.
- Budget for transportation management stands at RS. 1 Arba 53 Crores.
- Budget for accommodation, building, and urban development stands at Rs. 40 Arba 73 Crores.
- Budget for Earthquake Reconstruction stands at Rs. 1 Kharba 41 Arba.
- Budget allocation for Local Infrastructure and Airway Infrastructure amounted to Rs. 37 Arba 80 Crores.
- Budget allocation for Youth and Sports stands at Rs. 3 Arba 99 Crores.
- “Open Bank Account” Campaign and ambitious aim to have a bank account of every Nepali Youth.
- Encouragement of mobile, internet, and branchless banking so that rural area can have easy access to banking facilities.
- Priority for the use of cards and the internet to make and receive payments.