The Ministry of Finance has published Nepal’s Citizen Budget for FY 2083/84, presenting the annual budget in simplified form for the public. The government has allocated Rs 1.270 trillion for recurrent expenditure, Rs 431.11 billion for capital spending and Rs 422.65 billion for financial management. The budget is financed mainly through Rs 1.405 trillion in revenue, along with foreign grants, foreign loans and domestic borrowing. It targets 7% economic growth and 6% inflation.
The budget puts productive employment, governance reform and private-sector-led growth at its centre. Major priorities include infrastructure investment, agriculture, energy, tourism, information technology, quality education and health, social justice, climate resilience and the use of artificial intelligence. Among notable measures, the government plans a 50% tax exemption on income from IT service exports, concessional computing capacity for AI startups and a sovereign AI compute centre at Syuchatar. It has also raised the personal income tax exemption threshold to Rs 1 million annually and reduced customs duties on 273 categories of industrial raw materials.
Infrastructure and productive sectors receive substantial allocations. The government plans to add 1,040 MW of electricity to the national grid during the fiscal year, including 670 MW of hydropower and 370 MW of solar power, while expanding transmission infrastructure and developing battery storage and green hydrogen projects. Agriculture measures include Rs 32.46 billion for fertilizer subsidies, up to 80% premium support for crop and livestock insurance, processing centres and farmer identification cards. Road and urban infrastructure programmes include highway upgrading, bridge construction, maintenance and expansion of major trade and strategic corridors.
Social programmes remain a major component, with Rs 15 billion for health insurance, Rs 13.15 billion for programmes including treatment for poor citizens, maternity protection and free medicines, and continued social security allowances benefiting millions of people. The budget also provides targeted support for students, farmers, women, children, senior citizens, workers, disadvantaged households and young entrepreneurs, while aiming to expand safe drinking water, digital public services and basic health infrastructure nationwide.
