Nepal to legalise marijuana cultivation for medicinal purposes

Nepal is set to legalise the cultivation and consumption of marijuana for medicinal purposes, as announced by Finance Minister Barsha Man Pun on Tuesday. This announcement was made during the presentation of the government's budget estimates for the 2024-25 fiscal year. Pun stated that the necessary legislation would be established to facilitate the commercial production of marijuana in the country.

"Legal arrangements will be made for commercial cultivation and consumption of marijuana for medical use," Pun declared while unveiling a budget of Rs 1.860 trillion for the upcoming fiscal year.

To Legalise marijuana farming, Nepal must amend the Narcotic Drugs (Control) Act 2033 and submit an application to the Narcotic Convention to gain approval from the International Narcotics Control Board. Nepal is a signatory to the United Nations Single Convention on Narcotic Drugs 1961, which classifies marijuana alongside hard drugs such as heroin. This classification was highlighted by Nepalese media last year when a similar proposal was included in the budget for the 2023-24 fiscal year.

In the new budget, Rs 1.14066 trillion is allocated for recurrent expenditure, Rs 352.35 billion for capital expenditure, and Rs 367.18 billion for financial management, according to Pun.

The finance minister projected an economic growth of 6% for the upcoming fiscal year and assured that the government would maintain the inflation rate within a limit of 5.5%.

To cover the budget expenses, the government plans to collect Rs 1,260 billion in revenue and mobilise Rs 52 billion in foreign grants. Additionally, over Rs 200 billion will be sourced from foreign loans, and more than Rs 300 billion from internal loans to bridge the financial gap.