Nepal today unveiled a nearly USD 10 billion budget for fiscal year 2016-17 that will focus on implementing the new Constitution, accelerating post-quake reconstruction and revive the battered economy.
Finance Minister Bishnu Paudel said he prepared the budget in consultations with political parties, former finance ministers and various other stakeholders.
The NRs 1.048 trillion (nearly USD 10 billion) budget proposed a 25 per cent hike in the salary of civil servants.
The priorities of the budget, which envisages a 28 per cent hike over last year's budget, are implementing the new Constitution, accelerating development, speeding up post-quake reconstruction and reduce poverty.
Through the new budget, the government has allocated NRs 140 billion for post-quake reconstruction and rehabilitation.
Nepal's economy has suffered after two major earthquakes last year and also because of protests by Madhesis, who are of Indian-origin, over the new Constitution.
The Madhesi protest led to the blockade of border trading points with India, creating a huge scarcity of essential goods and petroleum products in the landlocked country.
The government has also proposed to levy 5 per cent tax on petroleum products to generate electricity on its own with a view to ending the current power crisis in the country.
Around 30 per cent of the government expenditure will be financed through foreign aid, including soft loans and grant-assistance.
The government has also allocated NRs 10 billion for construction of Kathmandu-Nijgadh fast-track road that will connect Kathmandu with the southern Terai region through shortest land route.
