Budget emphasis on infrastructure developments

Laying heavy emphasis on infrastructure development, the government has substantially increased allocation for agriculture, hydropower and road-construction in the budget for Fiscal Year 2008/09. Presenting the budget in the Legislature-Parliament on Friday, Finance Minister Dr. Babu Ram Bhattarai also announced some ambitious plans for hydropower development and improvement in agricultural productivity, aimed at ensuring food security.

Social security for needy groups: The government has increased social security expenditure by 440 percent to Rs 4.41 billion this year to provide relief to needy citizens. Considering the sharp rise in prices in the last few years, the government has increased monthly social security support for senior citizens, single women and physically handicapped people from Rs 175 to Rs 500, effective from Sept. 17, 2008. It has also lowered the age threshold for providing the social security allowance to 60 years from 75 years. Monthly Rs 500 has also been arranged for all age groups of fast disappearing ethnic groups. A monthly support of Rs 1,000 for fully handicapped and disabled, and Rs 300 for partially handicapped and disabled has also been proposed under the social security scheme.

Expansion of free education: The government has allocated Rs 38.98 billion for education, which is a 44. 5 percent rise over the revised expenditure of the last fiscal year. "Education for up to Class 8 will be made free from the current fiscal year and gradually be extended for up to Class 10," said Dr Bhattarai. All school-level students of Karnali Zone have been promised free education. The privilege will be extended for students of up to Class 12 in the public school system for all Dalit students across the nation, says the budget. It also says that a national literacy campaign will be launched in each ward of each VDC across the country mobilizing 35,000 youths. The government also vowed to end illiteracy by the end of the next fiscal year.

Health: Increasing the budget by 53.92 percent over the revised expenditure of the last fiscal year, the government has allocated Rs 15.58 billion to the health sector for Fiscal Year 2008/09. It plans to expand free medicine facilities to the level of district hospitals from the existing sub-health post and health post levels. In what may be termed as good news for poor heart patients, the government has announced that it will provide free of cost operation services at Shahid Gangalal Heart Center to children below the age of 15 and senior citizens above the age of 75 and also to all endangered ethnic groups.

Ambitious hydropower development plan: The government has made a huge allocation of Rs 12.69 billion for the development of hydropower. The amount is an increase of 113 percent, compared to the revised expenditure of the last fiscal year. To speed up the growth of this sector and realize the goal of producing 10,000 MW of electricity in the next 10 years, Finance Minister Dr. Bhattarai proposed establishment of a high-level Power Sector Development Committee under the Chairmanship of the Prime Minister. "Special emphasis has also been given to rural electrification by allocating Rs 1.52 billion to the small hydropower projects," said he. He further announced that developers would not need license from the government to develop hydropower projects of up to 3 MW. Such a facility was previously granted to projects of up to 1 MW capacity.

Roads: The government has allocated Rs 13.91 billion, which is a 77 percent rise over the last fiscal year's revised expenditure. "This year will be the year of construction," said Dr. Bhattarai, who announced that the government would construct 1,805 km of new roads and carry out maintenance work on 4170 km of the existing roads during the current fiscal year. He further said 325 small bridges, 250 suspension bridges and 6 motorable bridges would also be built during the year.

Agriculture: Aiming to bring about rapid transformation in the agriculture sector through commercialization and mechanization of agriculture, the government has increased agriculture budget to Rs 5.91 billion, which is 69.3 percent more than last year's revised expenditure. It has allocated Rs 1.25 billion to provide immediate relief to the people suffering from food crisis and to help farmers increase food production. "Cooperatives in Every Village, Food Storage in Every House campaign will be launched," said Dr. Bhattarai. He said 2,275 additional small irrigation projects would also be implemented on the basis of cooperatives and group models.

Emphasis on Irrigation: The government has set aside Rs 5.8 billion for large and medium irrigation projects in Tarai and hilly areas in a bid to increase productivity through round-the-year and reliable irrigation facilities. The allocation is an increment of 42.60 percent compared to the revised estimate of the last fiscal year. The government also plans to extend irrigation by completing and reconstructing 101 projects, installing 32 new deep tube-wells and 7,600 shallow tube-wells in Tarai in the current fiscal year. "Irrigation facilities will be increased to additional 900 hectares of land with the completion of 72 new technology-based irrigation projects in 38 districts of the hills and mountains. Additional 112 projects will be initiated in 55 districts," said Dr. Bhattarai.

Tourism and Aviation: With the objective of reviving the tourism sector, the government announced to mark 2011 as 'Nepal Tourism Year'. Dr. Bhattarai further said that the government would extend its guarantee to Nepal Airlines Corporation to arrange the purchase of two wide-bodied aircraft. He also promised to develop tourism related infrastructures. The government has allocated Rs 950 million for the aviation sector.
Source: eKantipur