The government has given special priority in the budget to the expansion of the country's digital economy through maximum use of information technology. Among the five strategies adopted to improve the business environment of the country, from simplifying the service delivery of public bodies on the basis of 'business process re-engineering', to providing ease to industries based on information technology, programs with the provision of allowing the earned income to be reinvested abroad by transferring technology abroad have been included in the budget.

Considering the upcoming year as the departure year of the information technology decade, the government has mentioned in the budget ambitious programs such as fellowship and internship programs for IT personnel, construction of state-of-the-art IT hubs, making public services faceless, paperless and contactless through e-governance. It is said that the year 2081 to 2091 will also be declared as the science and technology decade. Along with agriculture, energy, tourism, entrepreneurship and industrial development, the government has pointed out information technology as a sector that will help bring about economic transformation. 

Presenting the budget for the next fiscal year at the joint meeting of the Federal Parliament on Tuesday, Finance Minister Varshman Pun informed that the expansion of the digital economy is included in the five strategies of economic reform. For this, the government will launch a new phase of economic reform program, he said. Minister Pun informed that the latest financial tools like the preparation of Central Bank Digital Currency (CBDC) will be used along with the promotion of digital payments as part of the financial reforms to expand the digital economy. 

In the information technology sector, the government has set a target of exporting goods and services worth 30 billion in the next 10 years. Finance Minister Pun said that 500,000 direct and 1000,000 indirect jobs will be created during this process. "Nepal will be developed as an information technology hub," Minister Pun said, "Information technology will be established as a driver of the economy." According to him, a legal basis will be established to adopt the latest technologies based on information technology. He said that the government will also advance for the development, promotion and regulation of artificial intelligence. 

Finance Minister Pun said that a system has been arranged to give a discount on dividend tax if the information technology industry capitalizes its profits. He said that in case of capital increase to expand the capacity of the business, there is an arrangement to give tax concessions due to the change in control. In order to improve the business environment, the country rating, bilateral investment and double tax exemption agreements, increasing the limit of service charges for technology transfer and encouraging the private sector to establish companies that invest in enterprise and infrastructure development by collecting small capital are for the IT industry. Abhay Paudel, Treasurer of Nepal Association for Software and IT Services Companies (NAS-IT) said that there are targeted programs.

'It is not that the plans set for IT will bring change tomorrow, but at least the government has recognized the needs of this sector and started positive initiatives,' Paudel of NAS-IT said, 'IT companies have said that if they capitalize their profits, they will give a discount on dividend tax. This made it easier for us to capitalize because an additional 5 percent tax discount was given,' he said, 'The issue of opening a branch abroad has also been addressed by mentioning the issue of allowing investment abroad through the budget, but it needs more policy clarity.' 

Similarly, IT professionals have also welcomed the amendment of the Companies Act to simplify the process of registration, regulation and cancellation. "It is important to make it easy to enter and exit the market," says Juna Mathema, president of the Startup Forum of the Federation of Nepalese Industries and Commerce. Facilitates IT entrepreneurs or startups.' 

The government has allocated 17 million rupees for the establishment of a knowledge park in Khulmatar, Lalitpur, and it has been announced that an information technology park with high-speed internet, electricity and switches will be established using government and private buildings in Kathmandu Valley and Butwal. According to Finance Minister Pun, the work station will be operated in the technology park. He said that IT entrepreneurs will be provided free space for three years. It is said that arrangements will be made to use domestically produced software by public bodies. 

'IT services and goods export worth 30 billion in 10 years, digital Nepal framework modification, IT hub construction are praiseworthy,' Ranjit Kumar Poddar, president of Computer Association Federation (CAN), said, 'The best thing is to use indigenous software by public bodies. is the arrangement.' 

The government has announced to make public service delivery faceless, paperless and contactless through maximum use of information technology. It is said that 'business process re-engineering' will be done in the budget to make the internal work of public bodies and service delivery simple, easy, reliable and trustworthy. It is mentioned in the budget that artificial intelligence will be used to analyze tax information through the information technology system of revenue administration. 

"The system of the department will be modified so that all the details filed through the taxpayer portal can be filed through API by maintaining interconnection between the taxpayer and the information technology system used by the tax administration." The digital signature of the customs officer will be implemented on the customs notification letter. Land administration records will be digitized and arrangements will be made for land owners to access, and the work related to withholding and release submitted by banks, financial institutions, and cooperative organizations will be conducted entirely through the online system.