The government has estimated the annual growth rate to stand at around four percent in the next fiscal year. Unveiling the budget for the fiscal year 2020/21, Finance Minister Bishnu Prasad Poudel has proposed Rs. 164.7 billion ( Rs.16,47,57,00000) amid a function from presenting the annual budget for fiscal year 2021/22 from the Office of Prime Minister and Council of Ministers in Singhadurbar .

The Council of Ministers had, earlier today, approved the budget submitted by the Finance Minister.

Due to dissolution of the House of Representatives, Finance Minister Poudel presented the budget through the ordinances. Presenting the budget, he has projected the economic growth rate for the economy hit hard by COVID-19 pandemic.

The per capita disposable income is expected to reach US $ 1,486 by next fiscal year, according to the government’s estimate. It was then sent to the Office of the President to be certified by President Bidya Devi Bhandari.

Finance Minister Paudel, in his budget speech, stated that an annual growth rate of around four per cent has been estimated for the next fiscal year while the projected per capita disposable income in the same period is USD 1,486.

Addressing the current Covid-19 crisis in the country, the Finance Minister said Rs 4 billion has been allocated for procurement of medical equipment required for hospitals for treatment of Covid-19 patients.

Additionally, Rs 26.75 billion has been separated for procurement of Covid-19 vaccines, he added. Rs 37.57 billion was earmarked to curb the pandemic while Rs 5.60 billion has been allocated to purchase the medicines and equipment in view of controlling the pandemic.

The FM revealed that the government will waive taxes on hospital equipment required for installing oxygen plants. Likewise, Paudel shared that a 50 percent subsidy would be provided to all hospitals for installing oxygen plants. The government has also decided not to impose taxes on the purchase of medicines, and no VAT or customs duty on import of Covid-19 related supplies.

A 300-bed hospital in Kathmandu would be built keeping in mind treatment of communicable, highly contagious and other illnesses, he added.The Finance Minister is presenting the annual budget from Singhadurbar.