KATHMANDU: The government has allocated a budget of Rs 1.65 billion for subsidy on the premium of agriculture and livestock insurance. Finance Minister Barshman Pun, while presenting the budget for the next fiscal year in the federal parliament on Tuesday, informed that funds have been allocated for grants under this segment.

The government has been giving 80 percent subsidy on premiums for agriculture and livestock insurance. But the insurance companies have not been able to get payment from the government due lack of enough budget.

The insurance companies have stopped the agricultural insurance since last March because the government has not released the subsidies. Insurance companies have yet to receive payment of Rs 2 billion from the government.