Budget size is Rs 819.468 billion

Budget

The total size of the budget announced for the new Fiscal Year 2015/16 is Rs 819.468 billion.

This is 32.6 per cent greater than the budget allocated for the Fiscal Year 2014/15.

Of the total amount, Rs 484.27 billion (59.1 per cent) has been earmarked for recurrent expenditure, Rs 208.87 billion (25.5 per cent) for capital expenditure and Rs 126.33 billion (15.4 per cent) for financial provisions.

Presenting the budget at the Parliament today, Finance Minister Dr Ram Sharan Mahat said that Rs 475.01 billion would be collected from the revenue, Rs 2 billion from principal repayment, Rs 110.93 billion from foreign grants, Rs 88 billion, and Rs 94.96 billion from foreign loans. Also, he said that the state coffer has Rs 26.73 billion as savings from the Fiscal Year 2014/15.

What is more, the government has allocated Rs 74 billion for the National Reconstruction Fund, while extra Rs 17 billion would also be provided to the concerned authorities until the Reconstruction Authorities comes into operation.

Finance Minister Ram Sharan Mahat presented the budget for the FIscal Year 2015/16 at the Parliament.

The total size of the budget announced for Nepal’s new Fiscal Year is Rs 819.468 billion.

This is 32.6 per cent greater than the budget allocated for the Fiscal Year 2014/15.

Earlier, a meeting of the Cabinet held this afternoon had endorsed the budget.

Minister Mahat said the government is likely to collect only 93 per cent of the revenue estimated for this fiscal year, due to the April 25 earthquake.

He said the earthquake is likely to increase poverty in the nation. That, however, will be restricted to 25 per cent, he claimed.

The government is facing a serious challenge to maintain economic growth rate above eight per cent to graduate the nation from the least developed countries into the developing countries by 2022, he added.

Reconstruction in priority

The new budget aims to promote people’s trust in the government by prioritising relief, reconstruction and rehabilitation works in the aftermath of the devastating quake, he maintained.

“We will not let people of earthquake-hit region feel lack of budget,” he said.

The government will leave no stone unturned to revive tourism in the nation, the Minister added.

He urged private sectors to cooperate with the government in the reconstruction campaign.

The National Reconstruction Authority will be given a full shape soon, he said.

The National Planning Commission has estimated that the reconstruction efforts need an amount of Rs 667 billion.

Mahat, during his speech, said the reconstruction efforts will be completed in next five years.

As many as 50,000 youth will be trained to carry out reconstruction works, he announced. Likewise, government staff will also be trained for disaster management.

During the reconstruction, heritage sites will be prioritised, the Minister pledged.

The government will organise an Investment Conference in the next fiscal year to promote foreign investment in the nation, he added.

The government has allocated Rs 74 billion to the National Reconstruction Fund, while line ministries and concerned authorities will be provided with Rs 17 billion for reconstruction works till the Reconstruction Authority comes into operation.

New constitution and peace process

Minister Mahat said the government has managed every resource needed to promulgate the new constitution. Likewise, the government has allocated budget for local elections, the Truth and Reconciliation Commission and the Commission on Disappearance, he said.

Tourism

Minister Mahat said the government will introduce a National Tourism Infrastructure Project this year.

He said the government has allocated Rs 1.01 billion for tourism promotion and Rs 5.75 billion for upgrading of airports in the nation.

Roads and infrastructures

Mahat said the government will develop 10 new cities in the Tarai region while roads connecting to market areas of the region will be upgraded to six-lane.

Likewise, the government will begin construction of Kathmandu-Nijgadh fast track this year itself. Rs 1 billion has been allocated for it.

A ring road will be constructed in Nepalgunj of Banke.

Rs 1.95 billion has been allocated to upgrade Mid-Hill Highway, he said.

Rs 440 million has been allocated to construct cities along the Mid-Hill Highway.

Hydropower

The Upper Tamakoshi Project will be completed in two years. Rs 2 billion has been allocated for this project.

Likewise, Rs 3.37 billion has been allocated to carry out preliminary steps of the Budhi Gandaki Hydel Project.

The Tanahun Hydropower Project and the West Seti Hydropower Project will begin this year.

Village Development Committee

Each VDC will get additional Rs 500,000 budget this year. The government will encourage merger of VDCs and has announced incentives to the VDCs opting for mergers.

Constituency Development Programme

The government increased amount of the Constituency Development Programme by Rs 5 million. Now, it is Rs 15 million.

Likewise, the government will give Rs 2 million to each lawmaker to spend in infrastructural developments in the concerned constituencies. Earlier, it was Rs 1.5 million.

Kathmandu and around

The government will institutionalise Bagmati Clean-Up Campaign. Rivers of Kathmandu Valley will be made free of garbage, the Minister announced.

Likewise, 400 public toilets will be constructed.

The government will continue rind road upgrading and road expansions.

The Suryabinayak-Dhulikhel road will be upgraded to six-lane.

Sports

Rs 2.07 billion has been allocated to the sports sector.

The government prioritised cricket development in the budget. Cricket grounds in Kirtipur and Pulchok will be maintained. It allocated Rs 110 million for construction of the international cricket stadium in Mulpani.

Likewise, the government allocated the funds to upgrade the Dasharath Stadium and the football ground at the Chyasal-based ANFA Technical Centre.

The government will honour winners of international matches. Likewise, players will be insured.

The government allocated Rs 110 million for construction of cricket stadiums outside the Valley.

As many as 4,000 government schools be provided with sports items worth Rs 10,000 for each.

Agriculture, forestry

The government has prioritised commercilisation and irrigation in the budget regarding agriculture. Total Rs 26 billion has been allocated for agricultural development. Likewise, Rs 22 billion has been allocated for irrigation and Rs 4 billion for land administration.

Rs 12 billion has been allocated to forestry sector.

Roads

The government allocated total Rs 54 billion to development of roads and bridges across the nation.

Rs 2.13 billion has been allocated to upgrade Narayangadh-Mugling road section.

The government allocated Rs 2.5 billion for construction of suspension bridges.

Social security

In total, 2.1 million people including single women, senior citizens are getting social security allowances from the state.

The senior citizen allowance has been doubled to Rs 1,000 per month. Earlier, it was Rs 500. Likewise, female community health volunteers will get Rs 6,000.

Rs 110 million has been allocated to provide scholarship for technical education to children of back ward regions and communities.

Health

Abortion services at the government-run health institutions will be free. Likewise, newborns upto the age of 28 days will get free treatment.

Rs 270 million has been allocated to build hospitals in new municipalities.

The government announced a campaign of ‘one village: one doctor.’

The national will be declared fully-immunised by 2017.

Education

Rs 98.64 billion has been allocated for overall education sector.

The government will run a well-facilitated boarding school in each development region. Scholarship-receiving students of secondary level have to volunteer in literacy campaigns in the locality.

Likewise, scientists will get grant support from the Nepal Academy of Science and Technology.

Security

The Nepal Army will get 32.69 billion in the new fiscal.

Information and Communication

The National Information Commission will be upgraded. NTV and Radio Nepal will be merged. Krishna Prasad Bhattarai Mass Communication Academy will be established.

The government announced to buy new aircraft for the national flag carrier, the Nepal Airlines Corporation.

Source: THT