Govt tables budget of Rs 819.468 billion

Ambitious target of 6% growth; Rs 91 billion for reconstruction

• Rs 1,000 allowance for elderly and for widows


• Rs 2 million for MP-selected program


• Rs 15 million for Constituency Development Fund


• salary increment for civil servantsExcise duty up on tobacco products and liquor


• Starting 1200MW Budhi Gandaki Hydropower Project, 140MW Tanahun Hydropower Project


• 400 public toilets in Kathmandu Valley


• Building 1,200 houses for marginalized and Dalits as Janata Awash Program


• Completion of 456 MW Upper Tamakoshi Hydropower Project within two years


• No major changes in tax

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KATHMANDU, July 14: The government on Tuesday tabled a budget of Rs 819.468 billion for the next fiscal year, 2015-16, focusing on the reconstruction of earthquake damage. The budget includes a purse of Rs 74 billion for the National Reconstruction Fund and a separate fund of Rs 17 billion is also earmarked for the reconstruction.

The next year will be a 'reconstruction year'.

Tabling the budget in parliament, Finance Minister Ram Sharan Mahat projected an ambitious economic growth target of 6 percent, saying that such growth is possible with increased economic activity and investments from both the private and public sectors.

The reconstruction work will be implemented by the National Reconstruction Authority, a special authority that will implement reconstruction projects through fast-track mode in place of the current sluggish execution of projects.

Delay in the appointment of the CEO and

other key officials for the Reconstruction Authority has worried many about timely implementation, and the finance minister failed to address these worries.

Mahat has indicated clearly that it will take time for the reconstruction authority to implement its projects. The budget speech says, "Line ministers will carry out the work of rebuilding and reconstruction of private houses, public building, schools, health offices and historical and cultural heritage until the authority is formed." The ministries have been allocated Rs 17 billion for the purpose.

Ministries have low efficiency level in project execution and their project preparation takes much time. The budget speech says that the reconstruction authority will be instituted soon, but no specific date is given.

"The authority should be established immediately for starting its work as otherwise the reconstruction work will not take place and as a result there will be no economic activity," Senior Vice-president of the Confederation of Nepalese Industries and economist Madan Kumar Dahal said, expressing doubts over implementation, given the existing low efficiency of the ministries.

The government's programs also envisage reviving economic activities that were rattled by the earthquake, through financial and monetary measures. Programs also include bringing in public and private investment for capital formation.

High demand of construction materials will boost production and economic activity, Minister Mahat said, adding also that public offices will purchase from domestic industries even if such procurement is dearer by up to 15 percent.

Most of the items are just a repetition from previous years. It is necessary to provide employment to at least 500,000 youths annually, but the finance minister aims to providing jobs only for 50,000 youths. The budget allocation for education sector fell by around 12.5 percent, while it should have been allotted 20 percent of the total budget.

– Baburam Bhattarai,UCPN (Maoist)

Our party has a serious objection to this budget as Nepali Congress prepared it in a unilateral way. Budget has been prepared in an irresponsible way as it has failed to adopt balanced approach to development.

Agni Kharel, chief whip,CPN-UML

Budget couldn't prioritize administrative reform measures and lacks concrete policy and program on addressing issues of poverty, unemployment and corruption in political level.

Kamal Thapa, Chairman,Rastriya Prajatantra Party, Nepal

 Security and prison management

Rs 32.69b allocated for Nepal Army, and Rs 38.36 for Nepal Police and Armed Police Force

• Deployment of security agencies to maintain law and order and prevent robbery, hooliganism, extortion, lottery and other financial crimes.


• Modernization of Metropolitan Police to make it more professional.

• 'Police my friend' program to encourage public participation in curbing crimes.

• Upgrading of Nepal Police, Central Forensic Science Laboratory of Nepal Police.

• Rs 160m allocated to Nepal Police to enhance investigation capacity.

• Nepal Army to be deployed for road construction in remote areas

• New taskforce comprising Nepal Army officials for disaster management

• Rs 50m allocated for shifting Central Jail to Nuwakot district.