Annual budget of Rs. 1474 billion announced for FY 2020/21

Kathmandu, May 28: Finance Minister Dr. Yubaraj Khatiwada has presented an annual budget of Rs. 1474 billion 640 million for the upcoming fiscal year FY 2077/78 (2020/21) in the joint session of the federal parliament today.

Of the total budget, Rs. 948 billion has been allocated for recurrent expenditure while Rs. 352 billion will be used for capital expenditure.

The government has estimated to mobilise revenue of Rs. 889 billion and get Rs. 60 billion as foreign grants and seek Rs. 298 billion external loan and take Rs. 225 billion internal loan to meet the annual expendtiure.

The annual budget has a deficit of Rs. 524 billion while the estimated revenue mobilisation is less than the recurrent expenditure by Rs. 59 billion.

Budget For Agriculture Up By 6.6 Billion

The government has allocated Rs 41.40 billion for the overall development of agricultural and livestock sector.

Presenting the annual budget for fiscal year 2020/21 in a joint session of the Federal Parliament on Thursday, Finance Minister Dr Yubaraj Khatiwada said that the government had increased budget for commercialisation, modernisation and mechanisation of agriculture by mobilising the available labour forces.

The government has increased budget for agriculture by Rs 6.6 billion to Rs 41.40 billion for the next fiscal year. The government had allocated Rs 34.80 billion for the agriculture sector in the current fiscal year.

Dr Khatiwada said subsidy would be provided in agricultural inputs and chemical fertilizers.

Likewise, Rs 3.22 billion has been allocated for expansion and restructuring of the Prime Minister Agriculture Modernisation Project.

Under this programme, development of one production pocket area in all local levels on the basis of potentiality of crops will be ensured. Around 250 pocket areas would be developed in the upcoming FY, Dr Khatiwada said.

The upcoming budget has also set a target to make the country self-reliant on basic foods, vegetables and fruits at the earliest.

To increase agricultural productivity, the government will be focusing on optimum utilization of land and promoting the potential products, said the FM.

“A land utilization map will be developed for the proper utilisation of land and construction in fertile lands will be discouraged,” he said. “Also, land banks will be developed. The budget has proposed to allocate Rs 500 million for investment share in land bank,”

The budget has proposed to establish land banks in around 300 local levels in the coordination with the federal, state and local governments in the upcoming FY.

The special programmes related to vegetables, milk and meat production would be carried out to make the country self-reliant in these sectors in the coming fiscal year, he added.

Melamchi Drinking Water Service To Operate From Upcoming Year

The government has said that drinking water services would reach to each and every household accross the country within two years from now.

Presenting budget for Fiscal Year 2020/21, Finance Minister Dr Yubaraj Khatiwada said, “The primary works of Melamchi Drinking Water Project has completed and the service would operate from upcoming year.”

He also mentioned that Rs 5 billion was allocated for Melamchi project.

“This year drinking water services would be expanded in all State-capitals for operation of reservoir drinking water system,” said Minister Khatiwada.

Likewise, the government has separated Rs. 6 billion for operation of irrigation facilities in dry areas.

“Rs. 1.99 billion is allocated for development for drinking water services in Kathmandu,” said Dr Khatiwada.

The government will develop drinking water source and reservoir for which, campaign to make drinking water in Terai region arsenic free will also be introduced.

Likewise, Rs. 43 billion has been allocated for management of drinking water and sewage system in coordination of all three tiers of government.

130 Industrial Parks To Be Built, Rs. 2.64 Bln Allocated

The government has decided to start production of uniform of Nepal Police, Nepali Army and public service employees officials in the country.

Presenting the annual budget for Fiscal Year (FY) 2020/2021, Finance Minister Dr Khatiwada said, “The government has decided to introduce this programme for substituting import of clothes by promotion of clothes production within the country.”

Likewise, the government has managed concession for industrial and special financial sector.

“Budget worth Rs. 2.64 billion has been allocated for establishing 130 industrial villages across the couintry,” said Dr Khatiwada.

He added that the construction in special financial sectors which are underway would also be continued in the upcoming FY.

“A linkway will be constructed in order to start production from Nawalparasi-based Dhaubadhi Iron Mine,” said the Finance Minister.

Moreover, budged has been allocated for study of Phosphoride and magnesite production in Baitadi and Bajhang districts respectively.

Budget has also been allocated for continuing the work of Surkhet rock mine.

Likewise, the sick industries would be restarted by in the public private partnerhip model, said Dr Khatiwada.

‘Desh Darshan’ Programme To Promote Domestic Tourism

In order to uplift the tourism industry, which has deeply been affected by COVID-19 pandemic, the government has decided to introduce ‘Desh Darshan’ programme for promotion of domestic tourism.

Presenting the annual budget for Fiscal Year 2020/21 at the Federal Parliament today, Finance Minister Dr Yubaraj Khatiwada said, “Desh Darshan programme would be brought to promote internal tourism amongst government and private employees after the COVID-19 pandemic comes into control.”