New budget unveiled

The government has unveiled the new budget of Rs Rs 819.469 billon for the upcoming fiscal year that starts on 17 July.

The new budget, presented by Finance Minister Ram Sharan Mahat in the parliament on Tuesday, focuses on post-earthquake reconstruction of Nepal. However, Mahat said the districts not-badly-affected by the earthquake will not be left behind.

The government has allocated Rs 74 billion for post-earthquake reconstruction works for the next fiscal year.

"We want to rebuild the earthquake-affected country in the next five years, and we are committed to this resolution," he said. "Post-earthquake reconstruction is not possible by the government alone. The private sector and INGOs will be encouraged to participate in reconstruction works."

"We will provide financial assistance of up to Rs 200,000 and soft loan for the earthquake-affected people to rebuild their damaged houses," he said.

Apart from focusing on reconstruction, the government has allocated budget for upgrading Tribhuvan International Airport, completing postal highway, Janakpur airport, developing green cities, promoting solar energy in urban area, Tarai-Madhes fast track, reconstruction of Dasarath stadium, Mulpani cricket stadium, among many others.

Mahat said no stone will be unturned to develop Nepal as one of the world's best tourism destinations.

While delivering the budget speech, Finance Minister Mahat said the percentage of people living below the poverty line might increase after the April earthquake.

"In the next three years, all villages will get roads and electricity," he said.

Mahat also said budget has been allocated for two commissions (Truth and Reconciliation Commission and Commission for Investigation of Enforced Disappearances) formed to facilitate the ongoing peace process.

The government has increased the amount that Members of the Parliament (MPs) can spend in their respective constituencies under the Constituency Development Program (CDP). Now each MP will get Rs 15 million to develop their constituencies under the CDP. Although they had been demanding Rs 50 million each, the government increased the amount only by Rs five million.

The new budget has raised the social security allowance for senior citizens by 50 percent.