MoF holds discussion with Agricultural budget

 Kathmandu, Mar. 11

The government is all set to streamline and enhance the effectiveness of subsidies and incentives provided to the agricultural sector.

During a budget-related meeting for the upcoming Fiscal Year 2025/26 organised by the Ministry of Finance (MoF) with the Ministry of Agriculture and Livestock Development (MoALD) on Tuesday, the two ministries emphasised the need for a more result-oriented approach to their implementation.

According to a statement issued by the MoF, the meeting also deliberated on conducting a critical review of the existing subsidy programmes.

Deputy Prime Minister and Finance Minister, Bishnu Prasad Paudel, said that while various subsidy schemes have been introduced to encourage farmers and boost production, it is essential to review them to ensure they remain relevant and yield tangible outcomes.

Agriculture Minister Ramnath Adhikari stressed the importance of making subsidies more result-driven, increasing production in the agricultural sector, and achieving self-sufficiency in specific agricultural commodities.

Currently, the MoALD provides subsidies for chemical fertilisers, crop and livestock insurance premiums, and incentives for sugarcane farmers, among others.

According to the MoF, about Rs. 36 billion has been allocated for such subsidies and incentives in the current FY 2024/25.

Participants in the discussion said that subsidies should be directly linked to production incentives. They also highlighted the need to align federal programmes with the constitutional responsibilities of provincial and local governments, suggesting that some existing federal-level schemes should be transferred to lower tiers of government for better implementation.

The budget discussion was attended by National Planning Commission Vice-Chairman Prof. Dr. Shivaraj Adhikari, and high officials of the MoF, MoALD and departments under them.

Earlier, the MoF had also held discussions with ministries overseeing physical infrastructure, urban development, energy, health, industry, water supply, and federal affairs regarding the upcoming budget.

 Published in The Rising Nepal daily on 12 March 2025.