Nepal Government Reduces Agricultural Budget Despite Increased Fertilizer Allocation
Summary
Nepal's government has reduced the overall agricultural budget to 46.92 billion rupees for fiscal year 2083/84 despite increasing fertilizer allocation to 32.46 billion rupees, introducing subsidies for large investors and tax exemptions for agro-processing industries.
Key Points
- The Nepali government has decreased the total agricultural budget by 10.5 billion rupees for fiscal year 2083/84 compared to the previous year.
- Fertilizer allocation increased to 32.46 billion rupees, with plans to operate a 'Green Urea' fertilizer industry in collaboration with Nepal Electricity Authority and private sector.
- A 40 percent subsidy is introduced for farms investing over 20 million rupees, and agro-processing industries receive a 10-year income tax exemption.
- Farmers, especially smallholders, expressed dissatisfaction, criticizing the budget for favoring large investors and traders over small farmers.
