Author: space4knews

The government has decided to impose a three percent education equality fee on students enrolled in private schools starting from the upcoming fiscal year. The budget statement reads, “A three percent education equality fee will be added to all types of fees collected by educational institutions operated by the private sector.” May 29, Kathmandu.

The government has announced plans to collect a three percent tax from students attending private schools beginning the new fiscal year. This has been referred to as the ‘education equality fee’ in the budget. This means that an additional three percent charge will be levied on the fees paid by students. The budget statement explicitly states, ‘All types of fees collected from students by educational institutions operated by the private sector will include a three percent education equality fee.’

15 Jestha, Kathmandu – Constitutional expert Dr. Bipin Adhikari has labeled the budget presented by Finance Minister Dr. Swarnim Wagle as the “Cheetah Budget.” He described this budget as swift, agile, bold, and embodying an aspiration for significant progress. Dr. Adhikari wrote on social media platform Facebook, “The budget is an aggressive attempt aimed at reform, technology orientation, and assuring the private sector.”

He further added, “The strong aspects of this budget include simplification of the tax system, administrative restructuring, reduction in public expenditure, facilitation of investment, focus on energy, AI technology, agricultural revival, health insurance, education reform, and infrastructure, all presented as a unified ‘reform package.'” Given the budget’s commitment to substantial spending, he also pointed out the need to fulfill this through debt and deficits.

Dr. Adhikari concluded that for the budget to succeed, revenue projections must be realistic, capital expenditure must be implemented on time, and the declared legal and institutional reforms must be meaningfully enforced within this year. He stated, “In terms of implementation, resource management, and expenditure discipline, this budget appears challenging. There is no lack of direction. This budget pursues an ambitious reformist course.” However, he cautioned, “Due to our weak administrative capacity, there is the risk that this budget may remain merely declarative.” According to him, the budget, characterized by rapid pace, aggressive reforms, and the aspiration for major progress, requires strict discipline in execution to be successful.

The government has decided to increase customs duties and clean infrastructure investment fees on electric vehicles in the upcoming fiscal year’s budget, leading to a hike in the prices of luxury vehicles. Under the new regulations, electric vehicles priced above NPR 5 million will incur an additional clean infrastructure investment fee of up to 110%. Previously, customs duties were levied solely based on engine capacity, but now taxes will be determined based on the commercial value of the vehicles.

May 29, Kathmandu – Starting from the next fiscal year, the prices of luxury electric vehicles will increase. The government has raised customs duties and clean investment contribution fees based on vehicle prices, which will drive up vehicle costs. According to the new budget, electric vehicles will attract a 20% customs duty and a clean investment contribution fee of up to 110%, depending on their value.

Until now, electric vehicles were subject to customs duties based on engine capacity. The government has stipulated that for imported electric vehicles with a declared commercial value up to NPR 2 million, only a 2.5% clean infrastructure investment fee will be applied. For vehicles valued between NPR 3 million and NPR 4 million, an additional 15% clean infrastructure investment fee will be charged.

Vehicles with a commercial value between NPR 4 million and NPR 5 million will be subject to an added 70% clean infrastructure investment fee. For vehicles priced above NPR 5 million, an additional 110% clean infrastructure investment fee will apply. The government has clarified that the customs duty will be calculated on the declared value plus the applicable customs revenue, and on top of that, the clean infrastructure investment fee will be levied.

May 28, Kathmandu – Nepali Congress leader Vishnu Rizal described the budget as balanced yet average. He stated, “There is a lack of resources, and there are few major announcements. The debt level is high, both internally and externally.” On Facebook, Rizal wrote, “The budget’s implementation will only be possible if foreign investors provide funding.” He commented that allocating 20 percent of the budget to development projects and targeting a 7 percent economic growth rate is unrealistic. He added, “The budget is focused on the middle class, with significant expectations placed on remittances.”

Former Prime Minister Dr. Baburam Bhattarai has stated that although the upcoming budget appears attractive, it neglects investment in fundamental sectors such as education, health, and agriculture. He emphasized that the private sector alone cannot propel the economy, highlighting the need for a state-protected East Asian development model for Nepal. While the budget’s proposals on information technology and digital service delivery are positive, he noted that the existing structural framework will make it difficult to achieve targeted economic growth.

Dr. Bhattarai explained that despite the appealing presentation and outlook of the government’s budget for the coming fiscal year, it creates similar disappointment regarding the structural transformation of the economy. According to him, the budget prioritizes information technology and digital services but overlooks investment in essential sectors such as education, health, and agriculture. He stressed that without state protection, the private sector cannot enable the economy’s ‘take-off,’ and pointed out Nepal’s need for an East Asian development approach.

In a brief discussion about the strengths and structural weaknesses of the budget, Dr. Bhattarai remarked that although the language and presentation of the budget are appealing, there is no significant change in the overall structure. He argued that approximately 20 percent of the budget should be allocated to education, 10 percent to health, and 8–10 percent to agriculture. However, the current budget allocates only around 10 percent to education, 2–5 percent to health, and about 3 percent to agriculture.

Expressing the view that the budget fails to address the transitional phase of development, Dr. Bhattarai stated, “To make a qualitative leap in our transitional economy—from agriculture to industry and services—targeted investment in specific sectors is essential.” Although the budget presentation is attractive, he warned that the absence of structural reforms will make it difficult to guarantee good governance.

Former Finance Minister Barshaman Pun has accused the government of presenting a distribution-focused budget that contradicts its commitments. He pointed out that the budget size exceeds the Planning Commission’s allocation by 1.5 trillion rupees, and that the unrealistic scale of the budget has caused issues. Pun also commented that the budget appears to be tailored for the upcoming local elections. (15 Jestha, Kathmandu)

He highlighted inconsistencies regarding the budget’s funding source, which relies on loans, despite the ruling Rashtriya Samajwadi Party having criticized previous governments for taking on heavy debts. Pun said, “Even those who accused past established parties of plundering the country through excessive borrowing now find themselves borrowing and spending, which contradicts their past commitments. We must either admit that our previous criticisms were wrong or accept that the current situation does not align with our expectations.”

Elaborating on the budget size, Pun noted that it surpasses the Planning Commission’s recommended limit of 20 trillion rupees by 1.5 trillion rupees. “The budget size is not based on reality, even the Finance Minister is aware of this,” he stated. While Communist finance ministers have faced criticism in the past for introducing distribution-focused budgets, Pun pointed out that this budget follows a similar pattern. He reiterated that the budget seems designed with the upcoming local elections in mind.

15 Jestha, Siraha – The government has presented the budget for the upcoming fiscal year 2083/84. Finance Minister Dr. Swarnim Wagle unveiled the budget on Friday during the joint session of the Federal Parliament. The budget places special emphasis on infrastructure, health, sports, agriculture, tourism, and drinking water sectors in Madhesh Province.

According to Minister Wagle, projects related to railways, stadiums, hospitals, irrigation, and tourism development in the districts of Madhesh have been given top priority. The government has announced plans to advance the railway expansion work connecting Bardibas and Kathmandu via an express route. Budget allocation has been secured for the ongoing Bardibas–Biratnagar railway project, and funding has also been earmarked to complete the remaining works on the Janakpur–Jaynagar–Bardibas railway line.

In the area of sports infrastructure, the government has allocated NPR 403 million. In preparation for the proposed 11th National Sports Competition in Madhesh Province, necessary infrastructure will be developed. The budget highlights plans to upgrade at least ten football stadiums with a capacity of 8,000 spectators each by adding floodlights within the next three years. Additionally, indoor multipurpose stadiums with capacities of at least 2,000 spectators are planned for construction in Viratnagar, Lahan, Kathmandu, Pokhara, Surkhet, and Dhangadhi. The budget also aims for the establishment of modern cricket stadiums across eight major cities within five years.

Regarding healthcare, infrastructure development will progress at Narayani Hospital, Gajendranarayan Singh Hospital, and Ram Rajaprasad Singh Health Science Institute located in Madhesh Province. The government has announced plans to establish kidney disease treatment centers and trauma centers within the province. Furthermore, free cancer treatment for children will be provided at government hospitals.

In agriculture, plans include establishing mango processing centers in Siraha–Saptari and a tomato processing center in Sarlahi. To extend underground irrigation to 3,980 hectares of cultivable land in the Terai-Madhesh region currently lacking surface irrigation, NPR 183 million has been allocated.

To sustain the water cycle in Terai-Madhesh, approximately NPR 100 million has been allocated for programs involving water source conservation, pond construction, landslide control, and embankment building. In the drinking water sector, community-level water supply projects including deep boring will be expanded to address severe shortages during dry seasons. The government also plans to initiate the ‘Arsenic-Free Terai Campaign.’ An additional NPR 250 million has been allocated to complete 280 incomplete drinking water projects.

In tourism and culture, the process to inscribe Janakpurdham as a World Heritage site will be advanced. The government plans to develop and brand Janakpur as a ‘wedding destination.’ Budget provisions have also been made for upgrading Ramjanaki Path and Ramjanaki Parikrama roads, Minister Wagle stated. Moreover, Sakha in Saptari, Dhanushadham, and Gadhimai regions will be developed as regional corridors as outlined in the budget.

The budget also includes plans to operate model homestays in Madhesh for Dalit and impoverished communities as a demonstration project.