Budget 2024/025: Charting the country’s economic course « Khabarhub
Monday, June 17th, 2024

Budget 2024/025: Charting the country’s economic course


29 May 2024  

Time taken to read : 8 Minute


  • A
  • A
  • A

KATHMANDU: The unveiling of the budget for the forthcoming fiscal year 2024/025, totaling a substantial Rs 1 trillion 860 billion and 300 million, marks a significant moment in Nepal’s economic trajectory.

Finance Minister Barsaman Pun presented the budget during his eloquent budget speech at the joint session of the Federal Parliament, shedding light on the government’s strategic fiscal allocations and developmental priorities.

Breaking down the budgetary framework, significant proportions are earmarked for different facets of governance and development. Recurrent expenditures, critical for the smooth functioning of government operations, are allocated Rs 1 trillion 140 billion 660 million.

Meanwhile, capital expenditures, essential for infrastructural development and long-term growth, receive a substantial Rs 352 billion 350 million.

Additionally, Rs 367 billion 180 million is designated for fiscal management, emphasizing the government’s commitment to prudent financial governance.

The allocation of Rs 86.24 billion for the health sector and plans to expand irrigation facilities underscore the government’s prioritization of essential sectors vital for socio-economic progress.

Central to the budgetary discourse are the core objectives and strategic priorities outlined by Finance Minister Pun.

The five key objectives, ranging from amplifying production and employment opportunities to enhancing public service delivery, underscore the government’s multifaceted approach towards inclusive development.

Complementing these objectives are five strategic priorities, emphasizing economic reforms, sectoral growth, social welfare, and governance refinement.

Moreover, the budget introduces five economic reform strategies, highlighting the government’s proactive stance towards systemic enhancement, business environment facilitation, fiscal stability, financial sector resilience, and public administration modernization.

The transformative sectors identified within the budget, including agriculture, energy, information technology, tourism, and industrial development, are poised to drive Nepal’s economic diversification and sustainable growth trajectory.

Noteworthy is the government’s ambitious plan to allocate Rs 8.10 billion to the Ministry of Labour, Employment, and Social Security, underscoring its commitment to addressing labor-related issues and fostering social welfare.

The Prime Minister’s Employment Program, with a budget allocation of Rs 6 billion, aims to engage 200,000 unemployed individuals in public projects, providing them with livelihood opportunities.

Furthermore, the budget forecasts a modest economic growth rate of 3.9 percent for the fiscal year 2024/25, coupled with ambitious initiatives such as transforming Nepal into a premier wedding destination and establishing IT parks in Kathmandu and Butwal.

Notably, the government has designated the upcoming fiscal year as the “Year of Economic Reform,” signaling its unwavering commitment to bolstering the country’s economic landscape.

The allocation of Rs 86.24 billion for the health sector and plans to expand irrigation facilities underscore the government’s prioritization of essential sectors vital for socio-economic progress.

In essence, the unveiling of the budget for the fiscal year 2024/025 heralds a new chapter in Nepal’s development narrative, characterized by strategic fiscal allocations, transformative initiatives, and a steadfast commitment to inclusive growth and prosperity.

Five Strategic Priorities:

Spearhead economic reforms and bolster private sector advancement.

Prioritize agriculture, energy, information technology, tourism, industrial growth, and infrastructure development.

Strengthen the social fabric with focused investments in education and healthcare.

Ensure inclusivity and social welfare through robust social security measures.

Elevate governance standards and refine public service delivery mechanisms.

Five Economic Reform Strategies:

Implement structural reforms for systemic enhancement.

Foster a conducive business environment to spur growth and innovation.

Revamp the public finance system for fiscal stability and transparency.

Undertake comprehensive reforms in the financial sector to bolster resilience.

Modernize public administration for efficiency and effectiveness.

Five Transformative Sectors:

Revolutionize the agricultural sector for sustainable growth.

Propel the energy sector towards self-sufficiency and innovation.

Foster advancements in information technology to drive digital transformation.

Promote tourism as a key driver of economic prosperity.

Cultivate entrepreneurship and foster industrial development for economic diversification.

Rs 8.10 billion to Ministry of Labour

The government has earmarked 8.10 billion rupees for the Ministry of Labour, Employment, and Social Security.

This allocation underscores the government’s commitment to addressing labor-related issues and bolstering social welfare.

As outlined in the budget statement for the fiscal year 2024/025 by Finance Minister Barshaman Pun, several initiatives are set to unfold.

Furthermore, measures will integrate labor market dynamics, ensuring a seamless alignment between manpower demand and supply through an automated system.

Prime Minister’s Employment Program

The government has allocated Rs 6 billion to engage approximately 200,000 unemployed individuals in public construction and maintenance projects for a minimum of 100 days.

Finance Minister Pun said, “Around 200,000 individuals will benefit from the Prime Minister’s Employment Program, providing them with a vital source of livelihood for at least 100 days.

Additionally, measures will be taken to streamline the registration process for illiterate workers seeking employment abroad, including making orientation training free of charge, he said.

Economic growth of 3.9 percent

The government has projected an economic growth of 3.9 percent for the fiscal year 2024/25. Finance Minister Pun stated that Nepal will witness an economic growth rate of 3.9 percent.

Premier wedding destination

The government has unveiled ambitions to transform Nepal into a wedding destination. During the budget announcement for the upcoming fiscal year 2081-082, Finance Minister Barshman Pun disclosed plans to cultivate cultural and tourist sites into wedding venues.

Notably, Janakpur, revered as the matrimonial site of Ram and Sita, will be highlighted as a premier wedding hub. Additionally, Lumbini, the revered birthplace of Gautam Buddha, will be positioned as an exclusive birthing destination.

IT Parks in Kathmandu and Butwal

Finance Minister Barshman Pun also disclosed plans to leverage government and private buildings in Kathmandu Valley and Butwal for the establishment of IT parks. These parks will offer free space to operate ‘work stations.’

Additionally, a provision for complimentary ‘work station’ usage for a duration of up to three years within the IT park premises was underscored.

Economic growth of 3.9 percent

The government has projected an economic growth of 3.9 percent for the fiscal year 2024/25. Finance Minister Pun stated that Nepal will witness an economic growth rate of 3.9 percent.

Year of Economic Reform

The government has officially designated the upcoming fiscal year as the period for economic reforms.

Minister Pun emphasized the growing confidence within the private sector and highlighted promising indicators of economic advancement.

He said that the government would take necessary steps by establishing a commission aimed at boosting the country’s economy.

Finance Minister Pun announced the creation of an Economic Reform Suggestion Commission with the goal of bolstering the economy.

Health Sector

The government has allocated Rs 86.24 billion for the health sector.

Unveiling the budget for the fiscal year 2024/25, Finance Minister Pun shared this information during the parliament meeting on Tuesday.

Irrigation facilities

The government has announced plans to expand irrigation facilities to an additional 15,500 hectares in the upcoming fiscal year.

Finance Minister Pun made this announcement while presenting the budget for the upcoming fiscal year.

Minister Pun disclosed that a budget of Rs 36.81 billion has been allocated for water resources and irrigation.

Publish Date : 29 May 2024 06:54 AM

TRC Bill will not be used for political gain, will be concluded soon: Mahesh Bartaula

KATHMANDU: Chief Whip of CPN-UML, Mahesh Bartaula, emphasized that the

Tanker drivers, NOC reach agreement, fuel transport to resume today

KATHMANDU: The Nepal Petroleum Tanker Drivers’ Union has decided to

Fuel shortage in Kathmandu valley: Army’s Ripumardini pump runs dry

KATHMANDU: Kathmandu Valley is facing a severe shortage of petrol

At least 8 dead, 25 hurt in train collision in India

NEW DELHI: A cargo train rammed into a passenger train

Gold smuggling accused Chinese national found with Nepali citizenship

KATHMANDU: The Chinese national, arrested with 6 kg of gold,