KATHMANDU, May 28:  Nepal Government has announced the New Budget for the fiscal year 2016/17 with a whooping amount of  NRs 1,048.9 billion.  As launched on Saturday by Finance Minister Bishnu Prasad Paudel, the ambitious budget is expected to relief few sectors and  groups  but will certainly increase inflation in the country .

Following  major changes, the government has decided to raise the salary of civil servants by 25 per cent in the next fiscal year which increase the total salary amount  by 26.9 per cent to NRs 132.3 billion. The government plans to spend NRs 140.7 billion in post-quake reconstruction and rehabilitation.

Similarly, NRs 10 billion has been allocated for the construction of the Kathmandu-Tarai Fast Track ; Gautam Buddha Regional International Airport has been allocated NRs 7.2 billion; NRs 5 billion has been allocated for Pokhara Regional International Airport; NRs 4.2 billion has been allocated for the  construction of Postal Highway; and NRs 1.50 billion  for construction of Second International Airport at Nijgad.

Likewise,  the Budget shines on Electric Vehicle(EVs) with decrease in the import custom duty. The  custom duty on public EVs has been reduced to one percent and to 10 percent on private EVs. Earlier, the government had been imposing a standard 15 percent custom duty on EVs.

 

The new budget  has increased custom duty on import of all liquor and cigarettes .

The government has expanded the size of capital budget by 49.3 per cent to NRs 311.9 billion where its  planning to raise NRs 565.9 billion through tax and non-tax revenue. The budget also plans to manage NRs 10 billion through principal repayment and NRs 106.9 billion through foreign grants.

The resulting deficit will be financed through foreign loans of NRs 195.7 billion, domestic loans of NRs 111 billion and NRs 59.4 billion from savings of this fiscal year.