Kathmandu, May 11
The government is giving priority to the
development of reservoir-based hydro projects, aviation infrastructure, and digital
advancement in the budget of the upcoming Fiscal Year 2025/26.
Presenting the ‘Principles and Priorities
of the Budget of 2025/26’ at the joint session of the federal Parliament on
Sunday, Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel said
that the government aims to accelerate sustainable economic growth by adopting
a productivity-driven development model.
“Technological innovation,
entrepreneurship, and investment in emerging sectors will be encouraged,
alongside promoting a self-reliant and competitive economy aligned with the
vision of a prosperous Nepal,” he said.
According to him, core guiding principles
of the budget will be the implementation of constitution-guaranteed fundamental
rights, building a strong economy for national prosperity, coordinated
development, fiscal balance and budget discipline, private sector promotion and
citizen-centric services with good governance.
According to the document of principles and
priorities of the upcoming budget presented at the Parliament, reservoir-based
hydro projects will be prioritised to meet dry-season demand. Domestic and
cross-border transmission infrastructure will be developed, while solar energy
and electricity exports will be supported.
Likewise, while the promotion of religious,
cultural, adventure, and eco-tourism will be prioritised, operational capacity
of completed airports will be enhanced, and legal arrangements for using
forests and parks for tourism will be established.
The new budget will emphasise the use of
domestic raw materials, startup support, and promotion of local products.
Export-oriented production, industrial infrastructure, and supply chains will
be strengthened.
Similarly, the government will invest in
digital infrastructure and attract private investment in ICT. E-governance
services will be made simpler and more accessible while ensuring cybersecurity.
Priority to multi-sector reforms
Through the Appropriation Bill of the next
year, legal, institutional, and procedural reforms will be continued to foster
a business-friendly environment. Investment-related challenges, such as land
ceiling issues, forest use, and tax inconsistencies, will be addressed, said
DPM Paudel.
He said that strengthened collaboration
among federal, provincial, and local governments, as well as between public,
private, cooperative, and community sectors, will be emphasised for balanced
and inclusive development.
Another principle would guide the budget in
eliminating the irregularities and distortions that have been growing in the
field of public finance. Capital allocations will prioritise well-prepared and
high-yielding projects, while effective revenue mobilisation and responsible
public debt management will be key strategies. Public debt will be used in
projects of national priority that yield high returns, ensuring sustainability.
Similarly, to reform the public service
delivery, priority would be given to the rapid development of the ICT sector.
Public services will be integrated through the National ID and Citizen App.
DPM Paudel said economic governance will be
strengthened through the legal and regulatory reforms. Nepal will prepare for
its graduation from the LDC category by 2026 and achieve Sustainable
Development Goals (SDGs) by 2030, based on recommendations from the Economic
Reform Commission.
“Programmes will be announced to develop
skilled human resources based on market demand and promote self-employment
through youth-focused entrepreneurship and technology use. Returnee migrants
will be encouraged to invest their skills and capital locally,” he said. DPM
Paudel also reiterated the pledge to mechanise and commercialise agriculture to
increase productivity and food security.
Organic farming, safe produce markets,
improved irrigation, and modern input supply systems will be promoted.
Development of skilled HR
In the social sector, quality and practical
education and health services will gain importance. The federal government will
collaborate with local governments to improve school management, and federal
hospitals will expand their services.
Another priority area is human capital
development. Through the document presented at the Parliament, the government
said that the development of an entrepreneurial and skilled workforce will be
promoted to maximise the demographic dividend through programmes enhancing
knowledge, skills, and productivity.
The government also plans to announce
programmes to uplift disadvantaged communities, such as women, Dalits, Muslims,
and minorities. Likewise, youth development, women's economic participation,
protection of children and the elderly, and support for people with
disabilities will be prioritised.
Taking note of growing liabilities in for
social security, a financially sustainable and integrated social security
system will be developed, targeting vulnerable groups. Benefits will be linked
to national identification records for transparency, according to DPM Paudel.
Project completion in priority
Likewise, the budget of the upcoming fiscal
year will give priority to completing the national pride projects and large
infrastructure works with high returns. “Time-bound and cost-effective project
execution will be ensured with better land acquisition and forest-use
coordination,” read the document. Overlapping and prolonged small projects will
be reduced, and procurement-related legal complexities will be addressed.
The government also announced the
implementation of climate adaptation and mitigation programmes. The budget will
promote post-disaster reconstruction, and environmentally-friendly
infrastructure.
Through the document, the government also
pledged to attract private capital into high-return development projects
through innovative financial instruments, implement investment-friendly tax
policies, and boost the morale of security forces through necessary budget
allocation.
Published in The Rising Nepal daily on 12 May 2025.
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