The Finance Minister of Nepal Yubaraj Khatiwada on 29th May 2018 announced Federal Budget of Rs 1.315 trillion for the fiscal year 2018-2019.
In this budget, the Government has prioritized generation of employment opportunities, promoted agriculture and tourism sectors, stressed on conserving water resources, and enhancing the quality of public service delivery. Also, huge funds have been allocated by the government of Nepal to various sectors for developing country’s infrastructure.
Economic growth has been projected at 8 percent in the upcoming fiscal year.
Budget Highlights for Fiscal year 2018-2019 —
— The government has increased excise duty (Ansul) on steel products, produced in Nepal from Rs 1,000/MT to Rs 1,500/MT.
— Govt allocated Rs 151.08 billion for reconstruction work. Construction work will further be expedited to complete the other projects of reconstruction on time.
— For upgrading airports & to rescue of disaster-affected people, new helipads will be constructed, for that, the government has allotted Rs 19.35 billion for air transport sector.
— Nepal government also allocated necessary budget for the construction of smart toilets in and around urban areas, highways, and public places.
— To complete various ongoing projects and begin new projects to assure irrigation facility within five years, new multipurpose projects will be developed, based on feasibility. The govt arranged budget to operate small and medium-sized irrigation including Tar lift irrigation and shallow tube-wells in cost-sharing mechanism with the province and local level. The govt has allocated Rs 10.99 billion to expedite the construction work of Bheri – Babai diversion, Rani Jamara Kulariya, Sikta and Babai irrigation projects.
— The Govt has allocated Rs 83.9 billion budget for the energy sector. Special emphasis will be given to the development and expansion of hydroelectricity and all other types of renewable energy to provide energy to all the household of the country within coming three years. Appropriate hydropower project will be initiated with the investment of all workers involved in domestic and foreign employment including civil servants. High-ending Hydropower Project up to 3000 MW will be brought into implementation with the investment of the people in general.
— Rs 33.38 billion allocated for housing and urban development. To develop cities as Mega City, Green City, and the Smart City on the basis of potentiality. The emphasis will be given to the construction of the urban infrastructure along with the necessary facilities including entertainment.
— Rs 3.53 billion allocated to operate Terai-Madesh Road Infrastructure Special Programme to the local level linking to the southern border and other sectors lacking adequate physical infrastructure.
— Rs 5.25 billion allocated for making highway bridges artistic which are constructed around touristic places and complete strategic road bridges to facilitate smooth transportation. Bridges which are under-construction in the jurisdiction of province and local level will be handed over to the province and local level after completion
— Completed road projects will be brought under the Roads Board for sustainable management of road repair and maintenance. The financial resources will be managed through road tax based on the principle of road user pay. Repair and maintenance of large roads will be transferred to the Road Board. The budget of Road Board has also been increased to Rs 5.50 billion.
— Rs 109.38 billion allocated for the development of transport infrastructure.
Reconstruction activities after Earthquake and Flooding
— Necessary fund has been allocated to complete the construction work of private housing of earthquake victims in coming fiscal year. Construction work will further be expedited to complete the other projects of reconstruction on time. Rs. 151.08 billion allocated for reconstruction.
— Local Infrastructure Development Partnership Program will be operated under cost-sharing mechanism with province and local level for the development of necessary infrastructure in the local level, being implemented with the coordination and facilitation of elected representatives in federal, province and local level. The project will be selected and monitored by a committee comprising of Federal Parliament members of that particular constituency, members of province assembly and heads of local level and coordinated by the directly elected member of Representative Assembly. Under this program, maximum of five projects related to road, drinking water, irrigation and river control will be carried out in one constituency to be completed within three years. For this program, Rs 40 million allocated for each constituency.
— Rs 3.11 billion allocated for construction of suspension bridge in the next fiscal year with a target of completing construction of suspension bridges in all potential locations within upcoming three years.
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