Each year Nepal government sets a budget for the financial year. The budget of Nepal includes expenditure and spending for various sectors. This includes transportation, agriculture, education, industry, ICT, technology, communication, water supply, national security, and many other aspects. As a technology-centric website, our main aim is to focus on science, tech, IT, ICT, communication, energy, EV, and other related sectors. So in this article, we have gathered the highlights of Nepal Budget 2079/80 regarding all technology related policies and decisions.
Each year, the Minister of Finance announces the budget of the country in Parliament. Ministry of Finance (MoF) prepares the budget and economic bill for implementing the Nepal government’s economic proposal. For the fiscal year of 2079/80, respected finance minister Mr. Janardhan Sharma presented the budget of Nepal. So we have gone through the two documents and brought the main points that matter to our readers. Let us go through them one by one.
Industrial Development and Entrepreneurial Promotion
- The Nepal government is planning to increase domestic goods production and consumption with a new campaign of “Own Production Own Consumption“. The budget plans to make government and public institutions use more domestic products. Nepal government will also support the “Make in Nepal” and “Made in Nepal” campaign of the private sector.
- Rs 26,00,00,000 has been sanctioned for opening the “Business Incubation Center” in all seven states. The centers are being constructed in partnership with the private sector to promote knowledge-based business
- The new budget proposes to provide a subsidized loan to returnee migrant workers so that they can invest their skills and capital in productive jobs and self-employment.
- Multipurpose training centers are going to operate in all seven states to train people regarding self-employment.
Startup and Funding
- In order to develop youth entrepreneurship and new-flangled promotion, the government is planning to continue startup investment, reassess the program and make necessary improvements.
- The budget also wants to promote funding through venture capital for startups in Nepal.
- In order to promote businesses started by migrant workers, the government is going to provide challenge funds and loans as subsidies.
Education, Science, and Technology
- The budget proposes to provide skill-based training to students at the secondary school level through a new curriculum to make them self-sufficient.
- In order to make students self-sufficient, the proposal is to provide skills in at least one profession.
- The universities are now meant to facilitate 90 days of volunteer work from technical students at Bachelor’s and Master’s levels. The students should contribute to local level development programs or rural development work.
- Nepal Budget 2079/80 proposes to provide students with Digital Learning materials to improve learning capability.
- Rs 10,00,00,000 has been sanctioned to buy digital boards, internet connection, and required materials for 20 schools in each state so that expert teachers of English, Maths, and Science can provide a quality education through a virtual medium.
- In order to provide knowledge regarding Astronomy, the budget of Nepal 2079/80 aims to establish a multipurpose planetarium park in collaboration with Kathmandu Metropolitan City.
EV Promotion and Electricity
- The government is planning to facilitate the conversion of normal petrol vehicles to electric vehicles as well in a phase-wise manner.
- Nepal Electricity Authority (NEA) is going to operate 50 charging stations around Nepal.
- Petrol pump owners will also be encouraged to establish charging stations at their places.
- The budget also plans to slowly electrify the transport sector and kitchens in big cities.
- Public institutions will also be made to purchase EVs.
- This budget plans to push the distribution of NEA’s smart meter in Kathmandu valley and then slowly push it outside as well.
The EV or electric vehicle charm is rising in Nepal and people are generating more interest. Rising petrol and diesel prices are pushing people towards EVs. Nepal Electricity Authority (NEA) is also building charging stations to promote electricity consumption and EV. However, the import data show that the electric vehicles import is slow. This shall slowly increase when big manufacturers such as Honda, Hyundai, Tata, Mahindra, TVS, Bajaj, Suzuki, Yamaha, etc launch their electric cars and bikes.
Information and Communication: IT/ Telecom/ ICT
- In order to implement the concept of Cyber Security Assurance: 21st Century’s Need, the budget of 2079/80 plans to establish National Cyber Security Center. The center is going to develop and do research as an official authority on cyber security enhancement and digital forensics. National Cyber Security Center is also going to test the cyber security of the Nepal government’s digital systems.
- The Nepal Budget 2079/80 proposes to improve Postal service. The plan is to modernize and improve its reputation at the national and international levels.
- Nepal Government also plans to decrease the price of Internet in Nepal to increase reach and quality.
- Data Center construction initiation at Kohalpur of Banke and Khumaltar or Lalitpur is also in the plan.
- Feasibility study on the construction of data center at Dharan and Butwal Internet Exchange.
- Improving the capacity of the National Information Technology Center (NITC) and establishing of Disaster Recovery Center is also in the budget of Nepal.
- Expanding the reach of Radio Nepal and Nepal Television to 100% of the entire country is in the budget and economic policy.
- The budget also plans to improve the capacity of the Department of Information and Broadcasting to regulate digital platforms and online television.
- Nepal government plans to implement Digital Nepal Framework 2076 and transform federal ministries into digital offices.
- The budget of Nepal 2079/80 has provisions to provide accident insurance to online media journalists and staff as well. This provision was available to conventional media staff and journalists in past.
- The sanctioned budget of the Ministry of Information and Communications in this fiscal year is Rs 8,59,00,00,000.
These are the main provisions of the technology sector of Nepal. These are very crucial to developing Nepal’s IT and technological power.
Also Read: Cheap and Best ISP In Nepal
- The government aims to provide banking and financial literacy to students starting from the school level. This is planned along with the expansion of banking services in rural regions.
- Nepal Budget 2079/80 has a plan to provide basic infrastructure such as electricity, communication, and internet to provide banking and financial services in rural localities.
- The government of Nepal also aims to provide the necessary services for establishing a fully digital bank.
- Increasing the security of the payment system using new advanced equipment is a major plan for the finance sector. This is to focus on moving current financial transactions to digital transactions.
- The budget of Nepal 2079/80 also has plans to allow Nepalese staying in India to open banks in Nepal and send money.
Actually, Nepalese working, studying, and living in India can easily do this. When in Nepal, people can open a bank account in any of the Class A banks and take online banking services. For example, open a bank account with Nepal SBI and take a free online banking service. All Nepalese banks link their customer’s phone numbers for OTP and notification purposes. Before going to India, customers can enable roaming on their NTC or Ncell. So this allows people to receive SMS for OTP and notification. In India, people can open bank accounts with address proof plus other documents such as passport, bonafide, rent agreement, and electricity bills. Then Nepalese in India can send money to Nepal through bank and online remittance. SBI allows users to send money through a special Indo-Nepal remittance option in the Online SBI portal.
Also Read: Official verified PayPal in Nepal
Peace and Security
- Increasing the institutional quality and capacity to improve cybercrime control is a major aim of the budget.
- The budget has been sanctioned for improving the capacity of human resources involved in cybercrime control, investigation, and analysis.
- Immigration service is also planned to be modernized at the international level.
- The Nepal budget of 2079/80 plans to develop a system to update information and biometric data of incoming foreign citizens. There is also a plan to build a system to record information of arriving travelers beforehand using digital online methods.
- The Nepal government plans to distribute National IDs to all Nepalese citizens within two years. In the new fiscal year, the plan aims to provide National ID to 20,00,000 citizens.
- Concerned authorities are providing necessary resources to the District Administration office, passport office, and embassies to ease the distribution of E-Passports.
Also Read: Cybercrime and Penalties in Nepal
Taxation and Revenue
- As the government is becoming strict in matters of tax, there are new laws in place. The government is going to implement a system of issuing PAN card at the time of issuing the Citizenship certificate and National ID.
- If a minor needs to involve in investing and business then the minor can also avail PAN card with birth registration or a minor ID card with the parent’s citizenship certificate.
- The budget of Nepal 2079/80 has also made provisions to regularize and tax activities in Nepal that provide services in foreign countries via online platforms.
- New 4-wheeler EV manufacturing and assembling companies can enjoy a 40% income tax waiver for 5 years from the date of establishment.
- The government is now going to take a 1% tax on income or foreign currency earned by software export, electronic service export, business process outsourcing, and other IT-related activities.
- Nepal’s government is going to perform a phase-wise biometric update process on all business owners and firm holders. This is to eradicate the issue of people registering businesses using others’ names and evading taxes.
- Petrol pumps will be slowly made to use a real-time online billing system. This is going to happen in collaboration with Nepal Oil Corporation.
There has been a previous decision on the taxation of online income in past as well. Some banks were taking a 1% cut on a wire transfer of YouTube and AdSense revenues. So let’s see what happens. It would be better if the bank would directly send tax deduction information on the associated PAN of the account holder.
Key Highlights of Nepal Budget 2079/80
The key highlights of the budget of Nepal are as follows.
|Details/ Particulars||Amount in Rs|
|Total Annual Budget||1.793 Trillion (17.93 Kharba)|
|Capital Expenditure||380.38 Billion (3.80 Kharba)|
|Financial Grants to Provincial and Local Government||429.83 Billion (4.29 Kharba)|
|Re-Current Expenditure||753.40 Billion (7.53 Kharba)|
The budget of Nepal has many new things for people. It has salary increments, subsidies for EV manufacturers, and policies for increasing electricity consumption. There are also provisions for freelancers, startups, venture capitalists, equity funding, online job, and benefits for online media journalists. However, the main thing we all are hoping is for a better implementation of all these.