Preparing For Budget: Policy And Programs In Difficult Economic Times: Critical Perspectives

At a time when the economy is in recession, the government has announced policies and programs to bring the budget for the next financial year 2080/81 in order to achieve long-term, broad and inclusive economic growth.

May 22, 2023, 11:34 a.m.

The government has recently presented the policy and program for the financial year 2080/81. President Ramchandra Paudel has presented the policy and program at the joint meeting of the House of Representatives and the National Assemblyon Jestha 5. It has left an impression on the public that the trust of the citizens towards the big political parties is breaking.

The country is in extreme economic crisis . In this situation, the government is preparing for the next year's policy, public program and budget. It is a harsh reality that the common man should believe that the problem can be solved.

At a time when the economy is in recession, the government has announced policies and programs to bring the budget for the next financial year 2080/81 in order to achieve long-term, broad and inclusive economic growth.

Presenting the principles and priorities of the government for 2080/81 in the Parliament, the President said that the economy has improved and the interest rate has improved and the investment environment is getting ready.

He also said that the government has a plan to increase productivity through strong partnership with the private sector.

He said that by publicizing the policies and programs of the government, the scope of revenue will be widened by making the revenue administration more agile. He said that by making the financial administration more transparent, the government expenditure will be made frugal.

It has also been said that the electronic procurement system will be gradually made mandatory. He said that while protecting the interests of the savers of banks and financial institutions, arrangements will be made for loan investment in the productive sector.

It is said that the National Cooperative Policy will be amended. Structural reforms will be made for the development and expansion of the capital market. He said that Non-Resident Nepalis will be opened to the capital market. He said that access to insurance will be expanded across the country, and micro insurance will be facilitated.

He said that the 16th periodic plan will be formulated. It is clear that one opportunity for the government to show itself popular is the budget and the other opportunity is its implementation.

The country is a welfare state. The social security allowance system, which has been in operation for almost three decades, has not been adopted other measures to make it more effective except increasing the amount and reducing the age limit. However, the state cannot escape from this responsibility.

This system should be progressive. Through this budget, the government should get rid of the whole system of going to the social security allowance of thousand by riding a car worth crores. Therefore, need-based social security allowance should be given priority to the poor, disabled and those living in remote areas.

Recently, the National Statistics Office has predicted that economic growth will be only 2.16 percent in the current fiscal year 2079/80. The government, which aims to achieve an economic growth of 8 percent, is now under pressure to control government expenditure due to reduced revenue due to slowing down of economic activity.

In such a situation, the government has said that in the coming year, the budget will be brought in order to achieve broad and sustainable economic growth while keeping economic activities running.

According to the opinion of some people, even if we look at the social security allowance from the point of view of respect for the citizens, let us give two thousand rupees per month to everyone, and let us add two thousand rupees deducted from the upper class to the poor. By doing this, there is no additional burden on the state treasury. The policy says to pay online payment on social service.

Corruption control

The President has said that after the formation of the current government, effective work has been started to control corruption. He said that the efforts to control corruption have increased the trust of citizens. He also said that the spirit of democracy has increased with the rule of law.

Stating that the government and the citizens stand together in corruption control, he expressed his belief that corruption will be controlled by making it more credible. It is also mentioned in the principle and priority to promote good governance and improve service delivery for the implementation of the policies taken by the government and to increase the capacity of the state machinery to improve service delivery.

It is necessary to ruthlessly investigate all cases suspected of irregularities in the past in order not to lose the public trust that the government has earned through the investigation of the fake Bhutanese refugee case.

Restructuring federalism

He said that the effective implementation of financial federalism will make the internal debt limit more realistic. He said that the programs of the three levels of government will be coordinated. He said that liquidity problems in the market will not be allowed. According to the arrangements made in the constitution, it is necessary to institutionalize federalism, advance the agenda of economic development and prosperity.

It has become necessary and mandatory to identify and invest in projects with positive and negative relationships. The fact that the district coordination committee and the provincial structures, which have not been able to act due to many criticisms, have not been able to prove their justification in time, should not delay forming the Federalism Restructuring Commission be formed to present a blueprint for federalism restructuring so that there will be a central and powerful local government. Similarly, according to the report given by the Khanal Commission earlier, this is the appropriate year to abolish, merge and modernize unnecessary government agencies without delay.

Service industry

Professional Services For MSMEs and startups whose businesses are procuring business services or other services to promote these industries, direct benefit of payment of such taxes should be allowed, thereby reducing costs.

In this context, it will be a timely step to provide skills, technology and start-up capital to young people who want to set up a business and establish an effective and functional "Business Rehabilitation Fund" by collecting a certain percentage of the tax paid by businessmen to provide necessary support for the rehabilitation of ailing private sector businesses. .

He said that effective regulation and supervision will be done to manage microfinance financial institutions. He also said that the national cooperative policy will be revised by publicizing the policies and programs. He said that necessary arrangements will be made for monitoring and regulation of cooperatives, institutional governance, acquisition and integration, saving and investment.

Along with the restructuring of the cooperative sector, arrangements will be made for savings and credit cooperatives to focus on the production and labor sectors. He said that investments will be made in government bonds as well as private sector IPOs for Nepalis who have gone abroad for employment.

It is also mentioned in the policy and program that a special project will be conducted to connect the investment of non-resident Nepalis with the development and prosperity of the country.

It is also past time to comment that the government's policies and programs do not have a destination. Since this year's policy and program has been presented by the coalition government, there is no room for doubt.

There are also those who say that the government's policy and program for the next year has been revealed in the meeting of the House of Representatives.

According to the opinion of some people, it is a continuation of the old programs Policies and programs should not smell of irresponsibility and irresponsibility. This document, the document that came in the name of the policy program, should be a conduit for stability in the country.

It is also mentioned in the principle and priority to promote good governance and improve service delivery for the implementation of the policies taken by the government and to increase the capacity of the state machinery to improve service delivery. In a statement made public by the International Monetary Fund, despite the challenging global economy in Nepal, credit has helped to keep Nepal's economic situation balanced. It is mentioned in the statement that Nepal Rastra Bank has worked to protect macroeconomic and financial stability, and support sustainable development. The government of Nepal has projected that the country's economic growth rate will be 8 percent. But the IMF has predicted that the growth rate will be limited to 4.4 percent.

Access to insurance will be expanded across the country. President Ramchandra Paudel said this while presenting the government's policies and programs said that the low income category will be facilitated to get micro insurance through the local level. It is mentioned in the policy and program to expand the scope of agricultural insurance to cover agriculture, crop and livestock business. The government of Nepal has prioritized agriculture, industry, education and physical infrastructure and large strategic projects.

It is important to increase production and productivity in the agricultural sector and make it self-sufficient, ensuring food security and effective implementation of land use policy should be the priority of the government. Reduce foreign dependence by increasing production and productivity of the industrial sector; prioritizing entrepreneurship and encouraging startups; It seems that the government should give priority to the development and export of goods and services that have comparative advantages and high competitiveness, such as agriculture, information technology, and hydropower.

In the policy and program, a policy has been taken to complete the Kathmandu-Tarai/Madhes expressway project by 2083. Rehabilitation of flood-damaged roads has been prioritized.

The government is going to connect all the local level centers with the highways of the respective provincial centers in three years through policies and programs. Compared to neighboring countries, export cash subsidy is less in Nepal. In this context, effective implementation of the suggestion to maintain cash subsidy on exports based on value addition is necessary and inevitable. Since the budget is not enough to achieve the target economic growth rate, it is necessary to radically change the governance system including other aspects of the law. It has become necessary and inevitable to identify and invest in projects with high and global relations.

It has physical infrastructure plans and projects ahead of it. It is necessary to keep the big and small hydropower projects in the second place. It is said that the program to promote indigenous products has been rebranded under the 'Our Product Our Swabhiman Abhiyan'.

It is mentioned in the policy and program that an industrial environment will be created to develop industries based on agriculture, natural resource knowledge and high technology. Startup-based enterprise businesses are in the program to be encouraged. There is a program to increase diplomatic activity abroad to attract foreign investment in the industrial sector.

A high-level committee is in the process of forming a to study the issue of necessary management in decommissioning and consolidation of industries that have been closed for a long time. Hetauda Textile Industry, Gorakhkali Rubber Industry, Butwal Yarn Industry are in the program to be brought back into operation.

Until last year, the government had introduced alternative tax schemes that included lower tax rates and dividend distribution taxes, among many other benefits.

Subsidies should be provided to MSMEs so that they can grow better. He said that investment will be opened for non-resident Nepalis in the capital market. In the government's policy and program, it is mentioned that the leased government land will be monitored if it is used/not according to the purpose. He said that the delimitation of the land to be provided to the industry will be reviewed.

Concession shops will be established at the ward level for poor families, he said. He said that policies will be formulated so that entrepreneurship does not stop due to lack of investable capital. He said that foreign diplomatic missions will be used to bring in foreign investment in the industrial sector. He said that Hetaunda textile industry, Gorakhkali rubber industry will be brought back into operation. He also said that cheap electricity will be provided to industries. He said that investment in government bonds as well as private sector IPOs will be encouraged for Nepalis who have gone abroad for employment. He said that a special project will be conducted to connect the investment of non-resident Nepalis with the development and prosperity of the country.

The introduction of non-resident Nepalese into the capital market is mentioned in the policies and programs of every year. But the necessary infrastructure for that has not been prepared yet. He also said that the budget will be given only to projects that have been prepared in advance.

Due to the practice of allocating the budget without prior preparation, contracts are taken out of it and projects are stalled for years due to lack of preparation work. He said that the development projects will be completed on time and maintaining quality. He said that projects of national pride and transformation have been prioritized.

Another notable and controversial move is the government allowing the export of gravel, sand and stone. In the policy and program presented by the government for the next financial year, it is mentioned that emphasis will be placed on gravel, sand and stone mining so as not to harm the environment.

It is mentioned in the program that the minerals of Churekshetra will be mined and exported. This program was also in the budget during the previous government. But to stop the program in the budget, an interim order was issued after filing a writ in the Supreme Court.

A few days ago, the president of CNI said in a domestic program that if gravel and stone are allowed to be exported, two billion foreign currency can be earned in five years. While making the policy and program public, the President said that market monitoring will be made more systematic in the coming days.

In terms of consumer interest, market monitoring will be made more systematic and effective, and the environment where consumers will be cheated on price and quality will be ended, he said. The government has also said that by ending all types of syndicates and cartelling, ethics, cleanliness, competition and discipline will be made in business transactions. Those who consume 50 units in rainy season and 30 units in winter will get free electricity.

More on Economy

The Latest

Latest Magazine

VOL. 17, No. 22, June.28,2024 (Ashar-14. 2081) Publisher and Editor: Keshab Prasad Poudel Online Register Number: DOI 584/074-75

VOL. 17, No. 21, June.14,2024 (Jestha-32. 2081) Publisher and Editor: Keshab Prasad Poudel Online Register Number: DOI 584/074-75

VOL. 17, No. 20, May.24,2024 (Jestha-11. 2081) Publisher and Editor: Keshab Prasad Poudel Online Register Number: DOI 584/074-75

VOL. 17, No. 19, May.10,2024 (Baishak,28. 2081) Publisher and Editor: Keshab Prasad Poudel Online Register Number: DOI 584/074-75