29th May 2024, Kathmandu
Nepal’s Fiscal Year 2081/082 IT Budget: Key Slogans and Initiatives for the Information Technology Sector
In a historic move, Finance Minister Barshaman Pun has proposed a comprehensive budget of 18 trillion 60 billion 30 rupees for the fiscal year 2021–082, with a significant focus on the information technology sector. This strategic allocation underscores Nepal’s commitment to becoming a hub for technological innovation and development. Here are the key slogans and initiatives outlined in the budget:
Budgetary Slogans
- “Transforming Nepal into an IT Hub”
- “Embracing the AI Revolution”
- “Empowering the Youth through Technology”
- “Bridging the Digital Divide”
- “Promoting Innovation and Entrepreneurship”
Key Initiatives for Information Technology Development
1. Nepal as an IT Development Center
Ten-Year IT Plan: The final year of the decade-long IT initiative aims to export $30 trillion in IT services and create 5 lakh direct and 1 million indirect jobs.
AI Adoption: Establishing a robust legal framework to promote, develop, and regulate artificial intelligence.
2. High-Speed Internet and Data Security
Affordable Internet: Ensuring reliable, high-speed internet service with strong data security measures.
Digital Nepal Framework: Modification and institutionalization of this framework with a dedicated budget of Rs. 59 crore for implementation and monitoring.
3. Expansion of IT Parks
Infrastructure Development: Utilizing government and private buildings in Kathmandu Valley and Butwal to operate IT parks equipped with high-speed internet, energy, and security.
Free Workspace: Offering free workspace for three years to workstation operators in these parks.
4. Public-Private Partnerships for IT Infrastructure
Building Construction: Collaborative efforts to construct buildings for advanced IT operations in Charkhaal, Dillibazar, and Kathmandu.
Knowledge Park: Establishment of a knowledge park in Khumaltar, Lalitpur, with a budget allocation of Rs. 17 crore.
5. Promotion of Domestic Software and Data Management
Government Software: Encouraging public agencies to adopt software developed within Nepal.
New Data Center: Planning the establishment of a government data center, along with standards for private data centers.
Internships for IT Students: Creating internship opportunities for undergraduate and graduate IT students.
Bridging the Digital Divide
Broadband Access: Ensuring broadband internet connectivity for all community schools, health facilities, and ward centers.
Inclusive Technology Access: Providing technology access to underprivileged classes, areas, women, and communities to close the digital divide.
Incentives for the IT Sector
Dividend Tax Exemption: Exempting the IT sector from dividend tax if earnings are capitalized, promoting reinvestment in the industry.
Sector of Communications
Press Freedom and Right to Information: Ensuring complete press freedom and upholding citizens’ right to information.
Media Development: Plans to establish a fair, inclusive, professional, and competitive media sector.
E-commerce Hub: Restructuring the postal service to function as an e-commerce hub.
Film Studio and Movie City: Building a film studio in Banepa and developing Dolakha Movie City through public-private cooperation.
Conclusion
The fiscal year 2081/082 budget marks a significant step towards transforming Nepal into a technological powerhouse. With targeted investments in infrastructure, education, and regulatory frameworks, Nepal is poised to harness the potential of the IT revolution, fostering economic growth and creating opportunities for the younger generation. The proposed initiatives aim to drive innovation, promote entrepreneurship, and ensure inclusive access to technology, paving the way for a digitally empowered Nepal.
I am excited to see the new Nepal government’s 2081/82 budget making significant strides in the information technology sector. The decision to prioritize IT and promote Nepal as an IT hub, with a 10-year vision focusing on local software development and digitization, is highly commendable. Particularly encouraging is the emphasis on AI development and the introduction of supportive rules and regulations. As a professional specializing in AI, I fully support these initiatives. If the government requires assistance from AI practitioners like us, we are eager to contribute and support these efforts,” said Chiranjibi Adhikari, Cybersecurity expert and General Secretary of the Federation of Computer Associations of Nepal.
For more information, see Nepal’s IT Budget 2081-082