Ministry Proposes Budget Exceeding Ceiling for Economic Year 2083/84

Kathmandu. The Ministry of Industry, Commerce and Supplies has proposed a budget of NPR 10.13 billion and a framework of new programs for the upcoming fiscal year 2083/84. Secretary Krishna Bahadur Raut, presenting a brief overview of the budget formulation at a meeting of the Industry, Commerce and Information Technology Committee of the Federal Parliament, informed that the budget proposal exceeds the ceiling set by the National Planning Commission. The ministry had received a budget ceiling of NPR 8.31 billion from the Ministry of Finance and the Planning Commission. However, Secretary Raut stated that a program proposal of approximately NPR 1.75 billion more than the ceiling has been made due to the need for additional budget to advance industrial infrastructure development, export promotion, and national pride mega projects. The proposed budget allocates NPR 5.58 billion (57%) for recurrent expenditure, NPR 3.89 billion (38%) for capital expenditure, and NPR 469 million (5%) for financial management.
Investment Visa and Fast Track Service for Investors
The ministry has put forward the 'Investment Express Policy' to make the business process hassle-free and investor-friendly from the upcoming year. Under this policy, the goal is to complete all processes from industry registration to operational permits within a maximum of 30 days. Similarly, an investment visa system will be introduced to encourage investors bringing in large amounts of foreign investment to Nepal. The ministry plans to proceed with the legal process in coordination with the Ministry of Home Affairs. The digitalization of the system to enable investors to receive investment approval online from their own country within 5 days has also been prioritized, with the ministry believing this will reduce existing administrative hassles in attracting foreign investment to Nepal.
Focus on Startups and Women's Entrepreneurship
To attract new generation entrepreneurs, the ministry is launching the 'Startup Nepal Portal'. This portal will provide services related to company registration, tax exemptions, and seed capital in a single day. The ministry has proposed NPR 1.15 billion for startup enterprise loans. Additionally, a new concept of 'National Enterprise Promotion Facility' has been introduced to provide financial access and modern technology to micro, small, and medium-sized enterprises. Secretary Raut informed that special market-oriented programs and a 'Women's Entrepreneurship Development Strategy' will be formulated and implemented, especially for women entrepreneurs. The ministry has also proposed the establishment of 'Employment-Linked Production Sectors' for the expansion of labor-intensive and export-potential industries.
Strategic Projects and Mineral Exploration
Among the ministry's strategically important projects, Dhauwadi Iron Company has been given special priority. NPR 469 million has been proposed for its DPR and financial management. Similarly, NPR 22.9 million has been allocated for the next phase of the ongoing petroleum exploration drilling work in Dailekh. To develop the mining and geological sector as a basis for economic growth, policy reforms will be made for the sustainable use of construction materials like stone, gravel, and sand, and to control illegal excavation. For trade infrastructure, NPR 2.23 billion has been allocated for the 'Strategic Road Network and Trade Improvement Project'. Under this, warehouse and parking construction works will be completed at the integrated check posts in Birgunj and Biratnagar.
LDC Graduation and Production-Based Incentives
Nepal is graduating from Least Developed Country (LDC) status to Developing Country on November 24, 2026. To compensate for the potential impact on international trade and the loss of export facilities, the ministry is preparing to introduce a production-based incentive scheme. The existing export subsidy system has been revised, and NPR 1.17 billion has been allocated to provide incentives to industries based on production. The ministry has set an ambitious target to increase the industrial sector's contribution to the Gross Domestic Product (GDP) to 6% in the upcoming year, from its current low level. Furthermore, Secretary Raut stated that an additional 200,000 new jobs will be created in the upcoming year, and clear policy initiatives will be taken for the management of sick government and private sector industries that have been closed for years.
To ease the supply system, the ministry will make food transportation to remote districts and salt supply effective through the Food Management and Trade Company. The minimum support price for farmers' produce will be set, and the procurement process will be digitized, with payments directly deposited into farmers' bank accounts. To control potential monopolies and price hikes in the market, market monitoring will be intensified, and the creation of a digital trade portal for consumer protection is also a priority for the ministry.
MPs Seek Clarification Over Low Budget Allocation
MP Savitri Malla has objected to the budget allocated for the petroleum exploration project in Dailekh. During the discussion on the upcoming fiscal year's budget in the Industry, Commerce and Supplies Ministry at the meeting of the Development, Economic Affairs and Good Governance Committee, MP Malla claimed that the project could not be completed with the allocated budget of NPR 22.9 million. MP Malla mentioned that experts' reports show that petroleum exploration has been underway in Jaljale, Dailekh, for over a year and that there is methane gas there sufficient for 50 years. She asked,