Finance Minister Bishnu Poudel presented a budget of NPR 1.964 trillion (USD 14.34 billion) for the upcoming fiscal year in a joint session of both Houses of the Federal Parliament.
In the current fiscal year, although a budget of NPR 1.860 trillion (USD 13.59 billion) was initially presented, a mid-term review revised it down to NPR 1.692 trillion (USD 12.36 billion). Of the total budget, NPR 407 billion (USD 2.97 billion) has been earmarked for capital (development) expenditure, NPR 1.18 trillion (USD 8.62 billion) for recurrent expenses, and NPR 357 billion (USD 2.61 billion) for financial management, including payment of public debt. The size of the budget is one-fifth more than the previous year.
Under fiscal transfers, NPR 417.83 billion (USD 3.05 billion) has been allocated to provincial and local governments. The government expects to raise NPR 1.315 trillion (USD 9.61 billion) in revenue and NPR 53.45 billion (USD 390.63 million) through foreign grants. To cover the remaining shortfall of NPR 595.66 billion (USD 4.35 billion), the government plans to raise approximately NPR 233 billion (USD 1.70 billion) in foreign loans and NPR 362 billion (USD 2.64 billion) in domestic borrowing.
As per the constitution, the Finance Minister is required to present the annual budget on Jestha 15 (May 28/29) every year.
Before the budget announcement, he presented the Economic Survey, estimating that Nepal’s economic growth rate for the current fiscal year 2024/25 will be 4.61 per cent. For the next fiscal year, the government has projected a growth rate of 6 per cent. Last year’s growth stood at 3.7 per cent. The Economic Survey indicates that, except for Madhesh, Koshi, and Sudurpaschim Provinces, all other provinces have an economic growth rate above the national average.
The Ministry of Education has received the largest allocation, amounting to NPR 211 billion (USD 1.54 billion). The Ministry of Home Affairs follows with NPR 208 billion (USD 1.52 billion), while the Ministry of Physical Infrastructure and Planning has received NPR 152 billion (USD 1.11 billion). The Ministry of Urban Development has been allocated NPR 118 billion (USD 862.37 million), and the Ministry of Health and Population NPR 95.81 billion (USD 700.13 million).
Other allocations include:
– Ministry of Culture, Tourism and Civil Aviation: NPR 13.58 billion (USD 99.22 million)
– Ministry of Forests and Environment: NPR 18.61 billion (USD 135.99 million)
– Ministry of Information and Communication Technology: NPR 7.72 billion (USD 56.42 million)
– Ministry of Youth and Sports: NPR 6.08 billion (USD 44.42 million)
– Ministry of Women, Children and Senior Citizens: NPR 2.08 billion (USD 15.19 million)
– Ministry of Energy, Water Resources and Irrigation: NPR 86 billion (USD 628.25 million)
– Ministry of Agriculture and Livestock: NPR 57.47 billion (USD 419.75 million)
– Ministry of Defence: NPR 62.01 billion (USD 452.64 million)
– Ministry of Finance: NPR 49.9 billion (USD 364.65 million)
– Ministry of Water Supply and Sanitation: NPR 33.89 billion (USD 246.97 million)
The government has allocated NPR 10 billion (USD 73.06 million) to ensure the continuation of the health insurance program. The budget also includes a plan to settle all outstanding insurance claims within this fiscal year.
Minister Poudel has also laid out commitments to strengthen the economy. These include removing Nepal from the financial risk monitoring list ahead of schedule to boost credibility, using credit ratings to attract foreign capital, implementing recommendations from the High-Level Economic Reform Commission, promoting youth employment programs, and attracting private sector investment and technology for qualitative improvement.
