Country's first federal budget with some aye and nay; bestowed the budget of Rs 13.15 kharba
Finance Minister Yubraj Khatiwada had bestowed the budget of Rs 13.15 kharba for the fiscal year 2075/76 which is Rs 37 arba more than the previous FY budget.
The government has the plan to generate Rs 8.31 arba through revenue, Rs 58 Arba through foreign grants and remaining through foreign loans and domestic borrowing.
Khatiwada has allocated 8.45 kharba for recurrent expenditure, 3.13 kharba for capital expenditure, and 1.55 kharba for debt financing.
It aims to achieve the economic growth rate of 8% in the upcoming fiscal year.
This year’s economic growth rate is amended to 5.9 percent against the target of 7.2 percent made while announcing the budget last year. It has also targeted to limit inflation to five percent.
The capital gain tax in case of sale of listed shares has increased to 7.5% for a residential individual which was 5% before, for a residential entity remains 10%. The investors earning the gain shall be entitled to CGT.
The capital gain tax from the sale of non-listed shares is 10 %, 15% for the residential individual and residential entity respectively. CGT remains 25% same for others.
Dr. Khatiwada has planned private equity, Hedge fund, Venture fund will enter in the capital market for its expansion according to government strategy.
He also informs within one year every citizen will be equipped with a bank account.
He also added those productive sector companies incorporated with a paid-up capital above 1 arba should be listed in Nepal Stock Exchange after their conversion into a public company.
Khatiwada did not increase civil servants’ salary, but dearness allowance increased to 2000 and uniform allowance to ten thousand.
The budget has changed the structure of income tax slab from 15 percent and 25 percent to 10, 20 and 30 percent. Those having taxable income over Rs20 lakh will be charged 20 percent extra.