The honourable Finance Minister Mr. Prakash Sharan Mahat presented full budget for the fiscal year 2080-81( 2023-24) on Monday afternoon held in the Singh Durbar. The allocation of resources, priorities and significant policy statements are highlighted in the budget.

The Budget for 2080-81 is directed to build a strong economy with high, sustainable and far-reaching economic growth by addressing the problems and challenges seen in the economy of the country, creating a robust economy with the help of sustainable and widespread economic growth lifting the morale of the private sector.

The budget of Rs. 1,751.31 Billion has been allocated. Current Expenditure of the allocated budget is 1,141.78 Billion (65%) , Capital Expenditure is Rs. 302,08 Billion (17%) and Financing Provision is Rs. 307. 45 Billion (18%).

The sources of the budget are 71. 29% is from "Revenue", 13.66% from "Domestic loan", 12.14% from "Foreign Loan" and 3.09% from "Foreign Grant".

The budget of this fiscal year has following objectives:

1. To achieve wider, sustainable and inclusive economic growth through a dynamic and vibrant economy.

2. Creating a sense of quality social development, security, and justice.

3. Lift the morale of the private sector by preparing investment friendly environment and minimization of poverty by creating employment opportunities.

4. Creating overall financial stability.

5. Empowerment of federalism and good governance.

6. Enhancement of effectiveness of public expenditure by improving the budget system.

Budget has been prioritized upon:

1. Development of agriculture, energy and tourism sector.

2. Promotion of Investment, Industrial development and Trade balance.

3. Development of social areas and social security.

4. Quality physical infrastructure development.

5. Promotion of digital and green economy.

6. Environmental protection and disaster management.

7. Human resource development and creation of employment.

8. Improvement of Financial Sector.

9. Streamlining financial integration and improvement in service flow

10. Improvement in the public financial system.

Economic situation of nation shows:

1. Economic growth rate for the FY 2023-24 is estimated to be 2.16% whereas the inflation rate for 9 months of the current fiscal year is at 7.76%.

2. The balance of payments is Rs 180.17 in savings up to 13 April 2023 (Chaitra end 2079) and the foreign exchange reserves are seen to be sufficient to cover 11 months of goods import and 9.4 months of goods and service imports.

3. Remittance flow has increased by 24.2 % up to midApril 2023 (Chaitra end 2079) and has reached Rs 903 billion.

4. Government expenses are expected to be Rs 1,504.99 billion whereas revenue collection is expected to be Rs 1,179.84 billion during the current fiscal year, which is a 9.95% increment as compared to the previous year.

Here are some of the other major highlights of budget 2080/81:

1. A minimum of 1% of the total capital budget will be dedicated to research, innovation, and invention. Additionally, Rs 1 billion has been reserved for establishing a separate fund to support research, innovation, and invention. Necessary laws will be formulated to govern the operations of the fund, and provinces and local governments will be encouraged to contribute to it.

2. The country will foster a start-up ecosystem to promote innovation and entrepreneurship. The "Kathmandu Incubation Centre" will be established to cultivate an entrepreneurial culture, and Private Equity & Venture Capital (PEVCs) will be incentivized to invest in startups. Rs 1.25 billion has been set aside to support startups.

3. Proviso clause has been added to section 95A (7) which implies that advance tax of 1.5 % shall be collected on the import of goods attracting VAT.

4. The "Nagarik Pension Yojana" will be operated through the Citizen Investment Trust to encourage self-employed individuals to participate in future pension schemes.

The constitutional requirement obliges the government to reveal the budget on Jestha 15 each year.