Finance Minister Barshaman Pun has unveiled a budget for the fiscal year 2023/24 that prioritizes citizens’ welfare and economic reforms tailored to Nepal’s geographical realities. With a budget of Rs 18.6 trillion, Minister Pun emphasized the government’s commitment to citizen-centric policies and judicious adjustments in tax rates to support domestic industries.
However, the budget did not bring enthusiasm to the stock market, as the Nepal Stock Exchange (NEPSE) fell by 23.81 points following the budget announcement. Despite reaching a high of 2113.24 points before the budget, NEPSE dropped to 2089.42 points the day after, with a broad decline in share prices.
On a positive note, the gold prices surged in Nepal, with an increase of Rs 600 per tola reported by the Nepal Gold and Silver Dealers’ Association. Fine gold is now priced at Rs 138,200 per tola, indicating market volatility in the precious metals sector.
Meanwhile, the Iron and Rod Manufacturers Association expressed frustration over the budget provisions, warning of potential industry closures due to increased taxes on raw materials. The Association highlighted concerns about the impact on over 3,100 jobs in the melting plant sector.
In the forex market, Nepal Rastra Bank fixed the exchange rate for foreign currency, with the buying rate of one US dollar at Rs 133.06 and the selling rate at Rs 133.66. The spread between buying and selling rates is crucial for consumers converting currency, indicating the cost incurred in the process.