Nepal Budget 2078-79 - Highlights

Nepal Budget for Fiscal Year 2021/22 (2078/79)

The government of Nepal has announced the budget of Rs. 1,647 billion for the coming Fiscal Year 2021/22. The annual budget functions as leverage for economic development by providing policy guidance and facilitating through investment to bring effectiveness in economic, social and governance system of the country. Budget for Fiscal Year 2078/79 as presented by Hon’ble Finance Minister, Mr. Bishnu Prasad Poudel on 29 May 2021. 

[Note: This budget has been revised by new Finance Minister, Mr. Janardan Sharma. Please follow revised budget.]

Objectives of Budget 

• To protect the life of citizens from COVID-19 pandemic.
• To expedite the pace of economic activities and development programs for reviving economy at the soonest. 
• To enhance the welfare role of state, to provide social security and protection and to attain the prosperity along with social justice
• To uplift economy through mobilization of means and resources available with public, private and co-operative sector in productive sector.

Priorities of Budget

• Extension of testing, provision for treatment, supply of health equipment and materials, assurance of free vaccination, development of health infrastructure and effective mobilization of health workers to prevent, control and cure of COVID-19. 
• Uplifting the economic activities through relief packages to affected families from COVID-19 and providing incentive, subsidies and reviving packages to private sectors, 
• Assurance of job and employment to the entrants in labor market and laborer’s who lost the Jobs, 
• Social security and protection based on life cycle to all Nepalese Citizens, 
• Increment in agricultural production and productivity and assurance of food protection, 
• Investment in infrastructure for skillful and practical education, 
• Construction of infrastructure having strategic importance which helps in rapid industrialization and provides earlier returns, 
• Balanced development through coordination and cooperation between Federal, Provincial and Local level structure, 
• Ending all types of discrimination and inequality, equitable development and justified access on the returns of development, and 
• Provision of responsible governance, assurance of peace and security, corruption control, effectiveness on governance and services.

Major Highlights of Budget 2078/79 

• Free COVID-19 vaccines will be provided to all citizens.
• 20% waiver on purchase of rice, sugar, gas, salt, flour, lentils, cooking oil from Food Management and Trading Company Limited or Salt Trading Corporation (STC) during prohibitory period. 
• 100% waiver of electricity charges for households consuming up to 20 units, 50% waiver on households using up to 120 units and 25% off on using up to 240 units. 
• 100% waiver on the drinking water bill for consumers consuming only 20,000 liters per month during the prohibitory period. 
• Income tax exemption for 5 years for a startup company. 
• Loan at 1% interest rate for students buying a laptop. 
• Free Internet in all public schools. 
• Up to Rs. 2.5 million loans for undergraduate degree holders with education degrees (Certificates) as collateral. 
• Hotels that have shut down can be used as isolation centers, with government incentives as per rules. 
• Senior citizens allowance increased from Rs. 3,000 to Rs. 4,000 and all social security allowances increased by 33 percent. 
• Increment in salary of Civil servant amounting Rs 2,000 per month 
• Increment of salary of school’s workers including basic level teachers up to Rs 15000 p.m. 
• Tourism leave with amount equal to 10 day’s salary will be granted to the civil servants. 
• Prime Minister Employment program will be continued and 200,000 jobs to be created. 
• Children's paradise in Damak, Jhapa and senior citizens home will be set up in Gothatar, Kathmandu. 
• Targeted programs will be launched for income generation for women belonging to deprived communities. 
• Government will buy agricultural produce of farmers, budget allocated for concessional farmer-loans. 
• Free visa to tourists for a month in a bid to promote tourism in Nepal. 
• GPS tracking system in all trekking routes. 
• Integrated Tourism Promotion Program will be launched. 
• Mero Kitta will be used across the country for digital land registration and transfer of land ownership. 
• Light petrol vehicles will be displaced by electric vehicles by 2088. 
• 'Made in Nepal, Make in Nepal' campaign will be launched. 
• Water from Himalayan region will be exported. 
• Modern Park from Narayanhiti Durbar to Dasharath Rangasala in Kathmandu (Greater Tundikhel). 
• Madan Bhandari Technical University will start from next financial year. 
• National identity card for Nepalese citizens within 2 years. 
• Plastic bags less than 40 microns to be banned from next fiscal year. 

Major Highlights Relating to Tax 

• Compulsory Registration requirement in VAT based on the nature of business has been removed. 
• Provision for certification of Purchase Books and Sales Books by tax officer has been removed. 
• Taxpayer having pending case in IRD or Revenue Tribunal against the tax assessment done of till 2077 Asadh end if pays assessed tax amount and 50% of interest of such tax amount till Mangsir end 2078 need not pay additional interest, charge, penalty and fee. 
• Fee, penalty and charge shall be waived off if 75% of overdue excise duty assessed as per Excise Duty Act, 2015 and 100 % of excise duty assessed as per Excise Duty Act, 2058 if amount is paid till 2078, Poush end. 
• 6th Custom Reform and Modernization Plan to be started from Shrawan 1 and One Door System to be implemented thoroughly. 
• Electronic payment system for payment of all taxes and charges to be paid in custom point. Import /export number can be renewed once in 5 years. 
• Equipment like container scanners, weighing machines and other modern equipment to be installed in Mechi, Biratnagar, Birgunj, Bhairahawa, Nepalgunj, Rasuwa and Tatopani and new custom office to be opened in Gautam Budhha International Airport, Pokhara International Airport and Janakpur Railway Station. 
• Integrated laboratory shall be opened on the basis of priority in custom offices for controlling import of materials imposing threat on national security, human health, and nature. 
• Integration of QR code of excise sticker in system of IRD. 
• License holder of excise duty not renewing license can renew by paying renewal charge for each year till 2078 Shrawan end. No extra charges shall be levied on such renewal. 

Budget of nepal
budget of nepal 2078/79
budget of nepal 2021/22
budget of nepal 2078/79 highlights
budget of nepal 2021/22 highlights