Nepal budget 2014/15

In July 13, 2014 honorable finance minister Dr. Ram Sharan Mahat publish budget of Nepal 2071/72 (2014/15). This year budget focused on reducing poverty, economic growth, employment generation with the target of graduating Nepal from least developing country to developing country. This year budget was of NRs. 618100000.
Honorable Minister Dr. Ram Sharan Mahat put some Key points of Budget 2071 / 72 they are

Economic growth rate

Economic growth rate for fiscal year 2070/71 forcast is 5.2 per cent.

Aim to keep inflation within 8.5 per cent but could reach 9 per cent.

Tax

Tax exemption threshold increased to Rs 250,000 for individual income and up to Rs 300,000 for couple.

Health sector

“With the commitment to implement the new health policy, the government has allocated Rs 33.52 billion for the health sector in the fiscal year 2071/72 BS”, Finance Minister Dr Ram Saran Mahat announced.

Capacity of the government hospitals would be uplifted based on the concept of private public partnerships and a board with facilities would be arranged for the head of the nation, head of the government and other VIPs at Bir Hospital.

Arrangement will be made for free medicine distributions round the clock in the hospitals and health centres prescribed by the government as per the local necessity.

All sub-health posts will be upgraded into health posts and ICU wards will be established in five zonal hospitals while geriatric wards will be established in all zonal hospitals.

Non-practice allowance will be provided to doctors working in remote areas after preparing fixed standards.

Education

The government has allocated Rs. 86.03 billion for the development of entire education sector in the upcoming fiscal year.

“Finance Minister Dr Ram Sharan Mahat informed this while presenting the budget for newfiscal year 2071-72 BS (2014-15 AD) at the Legislature-Parliament Sunday. The existing education act will be amended, emphasis on promoting technical and vocational education”, he said.

As stated by the government in its new budget, at least 200 community schools across the country will be taken in to merging in the next fiscal year as the government policy of merging schools with least number of students and close proximity.

Sport – Cricket stadium 

The government has allocated Rs. 200 million for the construction of the international cricket stadium at Mulpani in the Capital.

In its budget for the fiscal year 2014-15, the government has released the amount for the construction of cricket stadium.

Plans of constructing at least one sports ground in every electoral constituency within the next three years – 53 sports grounds in the upcoming fiscal year.

There aren’t any particular commitments towards any other individual sports nor the budgetallocation for the actual sports activities alone. However the total budget for the Ministry of Youth and Sports is Rs 1.48 billion.

Defence

The government has allocated Rs. 28.86 billion to defense in the budget for the upcoming fiscalyear. The government has planned to make timely revisions on the Army Act- 2006.

Giving continuity to the ‘Bunker to Barrack’ project related to management of accommodation toNepal Armies in its new budget statement today, the government has vowed to make the project implementation more effective.

The budget has stated that the construction of Mailung-Syafrubesi and Khulalu Simikot road inKarnali corridor will be handled by the NA so as to establish the NA role in infrastructure development.

Social security

The government has allocated a total of Rs 55 billion for government employees’ pension and other programmes run by different bodies under the head of social security.

“Integrated social security bill will be drafted and tabled in the Legislature-Parliament to do away with the duplication of the budget in different programmes and reach to the target groups”, Finance Minister Dr Mahat said.

Voters’ identity cards will be made basis for distribution of social security allowance until the national identity card was not prepared.

Seven different plans will be run for the management of social security fund records by preparing the biometric identity cards of the contributors.

2360 income generating and 850 infrastructure development programmes will be run through the Poverty Alleviation Fund and Rs 3.61 billion has been allocated for this purpose.

The health insurance programme of 39 diseases commenced from the current fiscal year will be expanded in 15 districts with at least three districts in each development region.

The government has also announced Rs 2,000 additional allowance for health treatment to the people aged 70 and the monthly allowance of women social mobilizers has been increased by Rs 1,500.

Peace and securities

Rs 37.08 billion allocated to the Ministry of Home Affairs for peace and securities management.

Information and communication sector

Rs 4.13 billion for development of information and communication as well as Tarini Prasad Koirala Memorial Village in Biratnagar.

Agro sector

The government has, stressed the need of moderinising and commercialising agricultural sector which contributes one third portion to Gross Domestic Product (GDP).

The government has a policy of attracting youth community to agriculture, the backbone of country’s economy, with giving subsidy in the purchase of fertilizer, seeds, organic farming andagriculture tools and providing soft loans to farmers.

The government has allocated Rs. 2 billion for agro sector. The budget for the fiscal year 2014-15 AD unveiled by the government today has set a target of motivating youths in agriculture  by  discouraging them going abroad for jobs.

Urban Infrastructures

Rs 26 billion for road constructions under the central government.

Energy and Drinking water

1188 mega watt electricity within three years and 26 mw of Solar plant to be installed.

Any house hold installation of more than 1Kw solar systems can connect with grid lines and sell surplus electricity to Nepal Electricity Board through net metering. 100 per cent Tax exemption in any profit for 10 years on such sale of energy – 50 percent exemption there after for 5 years. And Rs 5million grant per mega watt installation will be provided once connected to the grid line.

Melamchi Project to receive Rs 4.64 billion more.

Half a Million rupees extra for Each Constituency

Addressing the demand of the constituent assembly members to some extent, the government has allocated half a million rupees for each costituencies on top of Rs 1 million previosly allocated for development programme.

It will focus on construction of suspension bridges, bridges on roads, expansion of road networks in 815 VDCs which are not connected to road link, upgradation of 55,000-km long roadways, and one district one national policy programme. The social security allowance will be provided through the bank.

Labour Bank

The government has announced plans to establish labour bank with joint investment of employers, employees and government.

National training development policy would be formulated and the institutes providing vocational skills and coordination will be made with the technical institutes of each election constituencies

(Source: http://arko.asia/news/nepal/budget-2071-72-fiscal-year-key-points/)

Visualization of Budget 2071/72 summary