Budget Fiscal Year 2019/20 HIGHLIGHTS (includes full text of budget)
KATHMANDU, May 30: Finance Minister Dr. Yubaraj Khatiwada unveiled a budget of Rs 1,532 billion for the fiscal year 2019/20. The government has allocated Rs 957.1 billion (62%) for recurrent expenditure, Rs 408.59 billion (26.6%) for capital expenditure and Rs 167.85 billion (11%) for financing provision for the implementation of its policies and programs.
The government, which has set a target of 8.5 percent economic growth, will mobilize Rs 981.13 billion in revenue, 57.99 billion in foreign grants and raise Rs 298.83 billion in foreign loans and Rs 195 billion in domestic debt.
The federal government plans to spend Rs 55.3 billion to the provinces and Rs 89.95 billion to local units under the fiscal equalization grants in the upcoming fiscal year. The province government will receive Rs 44.55 billion and local units will receive Rs 123.87 billion in conditional grants. Likewise, Rs 10 billion each has been allocated to provinces and locals units as matching grants and as fiscal transfers under special grants.
The government has decided to provide Rs 60 million to each lawmaker in the lower house elected under the first-past-the-post system for the development of their respective constituencies. A total of Rs 9.9 billion has been allocated as constituency development fund which has seen a hike by 50 percent.
The government has raised the salary of all the government employees by up to 20 percent effective from mid-July. The non-gazetted government official’s salary has been raised by 20 percent while gazetted third class and above officials’ salary has been hiked by 18 percent. The increment is applicable to civil servants, security persons, teachers and state-owned corporation staffers.
The government has also increased the social security allowance by Rs 1000 for each beneficiary. With the rise, the senior citizens above 70 years will receive Rs 3000 per month as elderly allowance from mid-July. The new arrangement will directly benefit about 1.3 million senior citizens.
Similarly, the social security allowance being provided to terminally handicapped, disabled, single women and people from indigenous communities on the verge of disappearance has also been increased from Rs 1,000 to Rs 2,000. About 900,000 citizens will benefit from this scheme.
Moreover, the government has allocated Rs 1.5 billion for Children Protection Grant, aiming to provide assistance to around 300,000 underprivileged and destitute children.
The government has allocated Rs 83.49 billion to the energy sector. According to Minister Khatiwada, 21 projects would be developed with investment from citizens to produce 3,500 megawatts power. Similarly, the government has planned to develop one project with investment from employees.
The government has allocated Rs 141 billion budget for the post-earthquake reconstruction—Rs 58.73 billion has been allocated to complete reconstruction of private houses and 1 billion for the completion of Dhahara reconstruction within the coming fiscal year. Likewise, the budget has set a target to complete the reconstruction of heritages damaged by the earthquake. Similarly, an arrangement of Rs 60 million has been made to each constituency area for local infrastructure development program. The budget has also given continuity to the Tarai-Madhes prosperity program.
The government has allocated Rs 163 billion to build transport infrastructure. According to minister Khatiwada, Rs 19.18 billion has been earmarked to expand East-West Highway into four land road. The roads to connect all the provincial headquarters to East-West Highway will be built. The government also plans to expedite the expansion of Butwal-Narayanghat and Kamala-Kanchanpur sections on fast track mode.
Likewise, the government has allocated Rs 12.20 billion for the black-topping of 435 kilometer section of under-construction of Mid-hill Highway, Rs 12.63 billion for the black-topping of Hulaki-Highway, Rs 5.06 billion for the Mechi Corridor, Koshi Corridor, Kaligandaki Corridor and Karnali Corridor, Rs 4.82 billion for Madan Bhandari Highway (which connects Dharan, Chatara, Gaighat, Katari, Sindhuli and Hetuada), Rs 1.81 billion for Ring Road expansion and Rs 610 million for the completion of Kanti Highway (Satdobato of Lalitpur to Buddha Chowk of Hetuada).
The government plan to build tunnel in Tikune-Koteshwor-Jadibudi, underpass in New Baneshwor and flyover in Tripureshwor to Maitighar.
The government has allocated Rs 7.7 billion for rail, metro rail and mono rail.
Also, the government plans to build a domestic airport in Kavre district, connect administrative centers of all local levels with black-topped roads within five years.
The government has allocated Rs 3.34 billion to complete the remaining works of Gautam Buddha International Stadium, Rs 8 billion for the under-construction Pokhara Regional International Airport.
The government has also allocated budget for the construction of waterways in Narayani and Koshi rivers.
The government has allocated 7.39 billion for the completion of Melamchi Drinking Water Project. The project which will divert 170 million liters of water to Kathmandu Valley per day is in the final stages.
The government has allocated Rs 3.99 billion for the sports sector including Rs 100 million to complete the under-construction Mulpani Cricket Stadium.
The government has increased 15% on public welfare advertisement fund, 100% coverage of health insurance to those joining the government’s health insurance scheme and free sanitary pad to girls studying in public schools.
Full text of the Budget for the fiscal year 2019/20.