KATHMANDU, May 30: The government has announced grants and concessional loan for entrepreneurship development through the budget for Fiscal Year 2018/19.
According to the budget speech, the government will implement Prime Minister Employment Program in order to create an environment for youths to build entrepreneurial skills in the country. For this, the government has allocated Rs 3.10 billion.
Presenting the budget for FY2018/19 in the joint session of parliament on Tuesday, Minister for Finance Yuba Raj Khatiwada announced that the government will provide loans of up to Rs 700,000 against academic certificates as collateral. The loan will have interest rate of 5 percent.
Khatiwada further announced that the government will consider foreign employment as an alternative strategy until sufficient jobs is created in the country for youths. Khatiwada also announced loans of up to Rs 1 million for youths returning from foreign job destinations. Upon verification of their skills, the government will provide loans to such youths to start businesses related to their skills and experience.
The government has said that local units will build at least one health post in all wards across the country within two years. The government has set aside Rs 4 billion in FY2018/19 to build health posts in all 1,200 wards across the country.
Toward education sector, the government has announced additional grants for technical subjects like science, math and English at the secondary level.
The government is also providing Rs 14.36 billion grant to the University Grant Commission to upgrade quality of universities of the country. Meanwhile, the government has allocated Rs 295.7 million for women entrepreneurship.
It has also announced to provide group loans of Rs 1.5 million for women entrepreneurship development. The loan carries interest of six percent.
Similarly, the government has announced to provide loans of up to Rs 1 million per group on group guarantee with the objective of improving socio-economic status of Dalit community through entrepreneurship development.
The government is also providing 75 percent subsidy on insurance of agriculture, livestock and fisheries. A total of Rs 5 billion has been allocated for all kinds of agri loans, according to Khatiwada.
Likewise, Rs 500 million has been allocated to provide grants to 25,000 households in tarai-Madhes region for installation of bio-gas plant.
The government is also providing Rs 50,000 grant to people below poverty line for buying corrugated zinc sheet and timber to build home.