Presented By

Heemani Gurung
Suraj Simkhada
Contents
Finance Minister Dr. Ram Sharan Mahat
presented expenditure plan of Rs 618.10 billion for the
fiscal year 2071-72 (517.24 billion previous year).
promises to end power cuts in the next three years,
provide income tax holidays of up to five years for
large-scale industries,
extend massive subsidies and tax exemptions to the
agriculture sector
improve road connectivity.

Next year budget will be 19% higher than current
budget.
Investor friendly budget



Goals of the budget
achieve economic growth rate of six per cent in the
next fiscal.

promoting economic growth,
reducing the level of absolute poverty,
creating jobs and
base for sustained socio-economic development.


Bill endorsed by Parliament
This Appropriation Bill
Financial Bill
Bill to Raise Public Debt
Expenditure of budget
Recurrent Expenditure like salary payment of civil
servants, grants to local bodies and debt servicing - Rs.
398.95 billion
Capital expenditure like building physical
infrastructure projects - Rs 116.75 billion
Financing Provision like investment in state-owned
enterprises and principal repayment- Rs 102.39 billion


Finance of the budget
Finance through tax and non-tax revenue- Rs 422.90
billion
Foreign Grants- Rs 73.38 billion
Principal repayment- Rs 1 billion
Foreign loans-Rs 49.52 billion
Domestic loans-Rs 52.75 billion

Another Rs 18.53 billion of leftover of this fiscal will also
be used to finance expenses of the next fiscal.

16.28
86.03
3.98
37.77
22.34
10.79
170.19
34.47
31.36
204.88
0 50 100 150 200 250
Social Protection
Education
Culture & Religion
Health
Housing and Community
Environmental
Economic Affairs
Public Order And Safety
Defence
General Public Services
Amount (Rs. Billion)
Amount (Rs. Billion)
Major Highlights
Manufacturing industries set up with capital of over
one billion rupees and firms related to tourism sector
and airline companies established with capital of over
Rs. 2 billion will be subject to income tax holiday for
the first five years from operation and 50% discount
thereafter for the next three years.

Major Energy Highlights
Hydropower projects that generate electricity till 2022-
2023 can enjoy an income tax holiday for 10 years and
50% discount thereafter for the next five years.
Hydropower development that evacuate power to
national grid will get incentive of Rs 5 million per
megawatt of power generation and those who
evacuate power by 2017-18 will get additional 10% of
that amount.


Energy Highlights
Government to generate 28 megawatts of hydroelectricity
and 25 MW of solar energy in 2014-15.
Government to complete Upper Tamakoshi, Kulekhani III,
Chamelia and Upper Trishuli hydroelectric projects and
generate 560 MW of electricity in the next three years.
Forty-two hydro projects being developed by the private
sector to add another 628 MW of electricity to the grid
within that period.
Project development agreements with 900MW Upper
Karnali, 900MW Arun III, 650MW Tamakoshi III and
600MW Upper Marshyangdi II hydroelectric projects to be
concluded. West Seti hydroelectric project to be
implemented soon.

Agro highlights.
Interest on loans extended for commercial vegetable,
poultry, mushroom and herbs farming, fishery, dairy
business, establishment of storage facilities, meat business
and slaughter houses not to exceed six per cent.
Fifty per cent interest subsidy on loans acquired for the
purpose of carrying out commercial farming in 10 hectares
of land in hilly region and 20 hectares of land in the Terai
region.
Seventy-five per cent interest subsidy on loans extended by
cooperatives operated by small and marginalized farmers.
Seventy-five per cent subsidy on crop and poultry
insurance premiums.
Agro Highlights
One per cent duty on imports of hand tractor, power
tiller, feeder machine and milling machine .
Farmers conducting dairy business with over 20 hybrid
cows to get 50 per cent rebate on purchase of milking
machines.
Fifty per cent value added tax rebate for tea industries
Rs 5.48 billion allocated to extend 255,000 tonnes of
subsidized chemical fertilizer in the next fiscal
Government to introduce Contract Farming Bill to
commercialize agricultural sector.
Infrastructure Development
Project or Activities Amount
Mid Hill Highway Rs 2 billion
North South Corridors Rs 1.18 billion
Postal Highway Rs 2 billion Rs 2 billion
Ring Road Improvement Project Rs 1.19 billion
Kathmandu Valley word widening Rs 1.8 billion
Trade route improvement Rs 1 billion
Maintenance of 16,788 km roads Rs 4.5 billion
Simara-Bardibas railway construction Rs 1.35 billion
125 bridges construction Rs 7.3 billion
Road links to 815 VDCs Rs 1.2 billion
Road connection to 815 VDCs Rs 1.2 billion
Upgrading of 55,000 km rural roads Rs 2.25 billion
Education Highlights
The budget allocation was 13.91 per cent of the total
budget this year, lowest of the decade.
Announce to pass the Education Act, bring an
umbrella act for universities and do the needful to
establish open universities in the country.
The government is also observing the new fiscal year
as the Year of eradication of illiteracy.
announce grants for 2,000 more teachers in Higher
Secondary Level. It also plans to merge 200 schools
during the new fiscal.
Education Highlights
encourage Public-Private Partnership to improve school
education. It has also assured facilities for private schools
that support government schools in improving the quality
of education.
announce more incentives for Dalit, Chepang and Raute
kids in terms of incentives ranging from Rs 1,500 to Rs
3,000 for higher education .
Skill oriented training for youths and vocational education
in all constituencies were the other programmes of
government.
One school one library one science lab program

Health Highlights
plan to decrease infant and maternal mortality rate
and to provide qualitative maternal services.
decided to begin mid-wifery education this year.
Develop the prerequisites of health institutions with
modern equipment.
New concepts will be brought to facilitate the
coordination between private and government sector
for capacity building in government hospitals.
Highly facilitated wards will be established at Bir
hospital to provide qualitative service to the heads of
state and government, and senior officials
Health Highlights.
drugs will be provided for free round-the-clock in
government hospitals and health centres, besides
upgrading sub-health posts and health posts by the
next fiscal.
ICU will be established in five zonal hospitals and
geriatric ward will be established in all zonal hospitals
New vaccine for pneumonia will be provided,
Doctors will be sent to remote areas and will be
provided allowance.
500 health posts and 300 primary health posts will
begin with check-up.
Sports Highlights
As per the programme of having at least one sports
ground in each constituencies, I have set aside budget
for 53 constituencies in the upcoming fiscal year.
Allocate Rs 200 million to construct the international-
standard parapet at the Mulpani Cricket Stadium
planning to construct a cricket ground in Bhairahawa
and other potential areas.

Other Highlights.
Government to frame policies to promote knowledge-based
service industries.
Introduce 4G service.
All government-owned vehicles should mix 10 per cent ethanol
on petroleum products from next fiscal.
Rs 1.59 billion for reconstruction and rehabilitation of
infrastructure damaged during conflict and launch special
programmes at conflict-affected areas.
Budget allocated for housing and security for female lawmakers.
Government to write off loans of up to Rs one million acquired
by people, who became martyrs. The government to write off
interest, fees and other fines of people who have disappeared, on
condition that their family members pay the principal amount.

Other Highlights
Government to provide income tax holiday for 10
years to those who develop resorts alongside Rara
Lake and other popular lakes.
Government to extend seed money of Rs 500
million to non-resident Nepalis and the private
sector to set up venture funds and raise small and
medium enterprises access to finance
Government to set up price stabilization fund,
with seed money of Rs 500 million, to adjust prices
of petroleum products
VAT rebate for textile industries

Effects of the budget
Rubber and plastic soles, radar equipment are getting
cheaper.
Potato chips, cigarettes, alcohol, gas regulator valve,
imported cement and clinker are getting costlier.
Income tax exemption limit for couples raised to Rs
300,000 from existing Rs 250,000 and for singles raised
to Rs 250,000 from Rs 200,000.
Ten per cent hike in salary of civil servants, along with
25 per cent increment in local allowance and 50 per
cent increment in field allowance keeping inflation
allowance increment constant.