New fiscal year begins in Nepal, Monetary policy now in effect

Nikhil Poudel
By
Nikhil Poudel
Nikhil Poudel brings a unique lens to stock market analysis by decoding the intersection of politics and economics.
505 Views
2 Min Read

Nepal has officially entered the new fiscal year 2082/83 starting today. With this, both the national budget and the monetary policy introduced earlier are now in full implementation.

Bigger Budget Than Last Year

Finance Minister Bishnu Poudel had announced a budget worth NPR 19.64 trillion in the parliament back on Jestha 15. This is NPR 138.1 billion more than the previous year’s budget of NPR 18.60 trillion.

Here’s the allocation breakdown for this fiscal year:

CategoryAllocation (in trillion NPR)Percentage of Total Budget
Recurrent Expenses11.8060.1%
Capital Expenditures4.0820.8%
Financial Management3.7519.1%

The allocations are 5.6% higher than last year’s estimates and 18.2% more than revised estimates.

The government aims to raise NPR 13.15 trillion through revenue and NPR 53.45 billion through foreign grants.

🏦 New Monetary Policy Kicks In

The Nepal Rastra Bank’s (NRB) monetary policy for FY 2082/83, introduced earlier than usual on Ashar 27, is also now in effect. This is Governor Bishnu Prasad Paudel’s first monetary policy.

Key highlights that start from today include:

1. Loan Against Shares Increased

  • Investors can now take margin loans up to NPR 25 lakh against their shares.
  • The total margin loan limit from all institutions is capped at NPR 25 crore per individual.
  • This does not apply to non-margin-based share loans.

2. Easier Home Loans

  • The Loan-to-Value (LTV) ratio for residential properties is now 80%, up from 70%.
  • Individuals can now borrow up to NPR 3 crore for buying homes (previously NPR 2 crore).

3. More Time for Financial Reporting

  • Banks and financial institutions now have 15 days after each quarter to publish financial statements (previously only 7 days).
  • For the fourth quarter, they now have time until Shrawan 30 (previously within 21 days).

This fiscal year brings forward major changes aimed at boosting investment, home ownership, and transparency in financial reporting. Stay tuned to see how these policies unfold across Nepal’s economy and capital markets.

Share This Article
Follow:
Nikhil Poudel brings a unique lens to stock market analysis by decoding the intersection of politics and economics.
Leave a Comment

Leave a Reply

Your email address will not be published. Required fields are marked *