Budget 2079/80 Highlights:

Budget Goals: Stability, productivity, and employment growth.

The major purpose of the budget is to decrease imports by 20% and
increase export by double.
Budget Size: 17.93 Kharba,
The economic growth rate will be 5.8 percent.
Inflation target for next year is set to be below 7%
• Capital of over Rs. 1 billion, an annual turnover of over Rs. 5 Arab, Large
mining industries, cement industry and real sector companies receiving
government grants and concessions should also enter the capital market.
• 10 percent reservation in IPO for Nepali workers living abroad legal
provision will be made for NRNs to invest in Nepal's capital market.
• Increase in Salary of Govt Employees by 15%,
• Reduction in Petrol Tax,
• Only entities and individuals who have obtained permission from the
official body will be allowed to trade real estate.
• Capital gains tax on real estate sales increased
Time Past (%) Current (%)
More Than 5 Years 2.5 5
Less Than 5 Years 5 7.5
• Rs 500,000 minimum income tax slab for unmarried people.
• Rs 600,000 minimum income tax slab for married people.
• IPO of Nepal Electricity Authority granted at a premium price.
• The limit of tax exemption from insurance premium has also been
increased. The limit of Rs.20,000 has been increased to Rs. 40,000.
• 5 Kharba microfinance fund, farmer pension program will be started to give
loans to farmers through microfinance.
• Concessional loans will be provided through microfinance.
• The interest rate of productive sector and business loan will be different.
• Insurance companies must invest a certain percentage of their profits in the
infrastructure sector.
• Private equity and venture capital will be allowed to operate.
• 10 lakh tourists to be attracted next FY
• Hotel businesses affected by COVID-19 will get an exemption of license and
renewal fees
• Each branch of commercial banks will have to provide loan to at least 5
agricultural production and processing industries.
• Cooperatives should invest 50 percent in the productive sector.
• Old age allowance in 68 years now. Previously, it was 70 years.