Providing a ray of hope amid the pandemic’s devastating second wave, the Nepali Government has rushed to announce the Federal Budget for the Fiscal year 2078/79 (2021/22).
Minister Paudel unveiled the annual budget virtually from Singha Durbar on Saturday as it could not be presented at the House of Representatives, which was dissolved recently.
On May 29, 2021, Finance Minister Bishnu Prasad Paudel has announced NPR 1.647 trillion budget for the upcoming fiscal year 2021/22 that starts in mid-July.
Of the total budget, NPR 678.610 billion has been allocated for recurrent expenditure and NPR 347 billion for capital expenditure.
For the second year in a row, the government has given special focus to controlling the COVID-19 crisis and economic recovery.
“For the government, the priorities are saving lives from the pandemic, recovering the economy damaged in the pandemic, promoting social security, and utilizing public and private resources to boost the productive sector,” mentioned FM Paudel.
The government has increased the Ministry of Health and Population (MoHP) fund by 35% to NPR 122.77 billion. Allocating NPR 26.75 billion for the procurement of COVID-19 vaccines, the government has prioritized vaccine procurement from foreign countries and inoculating people for free.
In the new budget, the Nepali Government has waived all taxes levied on equipment procured by hospitals for installing oxygen plants and purchasing medicines. It also decided to provide a 50% subsidy to the private and public hospitals for installing oxygen plants.
Moreover, the government has also decided to establish a 300-bed hospital in Kathmandu.
Nepal Budget FY 2078/79: Key Highlights and Takeaways
- NPR 14 billion for the Ministry of Labor, Employment and Social Security
- NPR 45.09 billion for the Ministry of Agriculture
- NPR 180.04 billion for the Ministry of Education
- NPR 1.20 billion for women, children, and senior citizens
- NPR 7.60 billion for concessional loans to farmers
- NPR 12 billion to establish chemical fertilizers
- NPR 4 billion to procure health and medical supplies to combat COVID-19 pandemic
- NPR 400 million for skill development training
- NPR 2.5 million for the security of educational security certificate
- NPR 4,000 for senior citizen allowance per month
- 33% rise in all types of social security allowances
- 50% subsidies in farm insurance premium
- NPR 12,000 transport allowance to the health volunteers
For the FY 2021/22, the Nepali Government has targeted an economic growth rate of 6.5%, hoping that the vaccination drive could aid economic recovery.
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