KATHMANDU: Finance Minister Yubaraj Khatiwada presented a budget of Rs 1,474.64 billion for the Fiscal Year 2020/2021 in the joint session of the House of Representatives and National Assembly here today, with a major focus on reviving the economy following the effects of COVID-19 pandemic.
Out of the total budget, government aims to utilise Rs 948.94 billion as recurrent expenditure. Likewise, Rs 352.91 billion and Rs 172.79 billion have been earmarked for capital expenditure and financing provision, respectively.
Moreover, the government has set a revenue collection target of Rs 889.62 billion. Likewise, the government will seek foreign grants and loans of Rs 60.52 billion and Rs 299.5 billion, respectively. Domestic loans amounting Rs 225 billion is expected to balance the expenditures and sources of the budget.
As compared to the previous fiscal year, the budget size has been reduced by 3.8 percent while the economic growth in the upcoming fiscal has been projected at 7 percent.
Highlights of the Budget:
- Those unemployed owing to the coronavirus crisis will be mobilised in development works.
- Rs 11.6 billion has been allocated to facilitate employment of 200,000 people under the Prime Minister Employment Programme.
- Rs 1 billion has been allocated to facilitate employment for 50,000 people through skill-based training. Rs 4.34 billion has been allocated to provide skill-based training to 75,000 people in the coming year.
- Employment will be created for 40,000 people through small farmers credit.
- Foreign nationals will not be employed without permission from the government.
- Rs 145.22 billion will be allocated in provincial and local level through Fiscal Equalization Grants.
- Rs 1,435 billion in Foreign Direct Investment has been pledged through the IBN.
- Rs 500,000 medical insurance for all health workers.
(This is a developing story; please check back periodically for updates)