CIT to distribute additional 1 pc return

Kathmandu, June 29

Citizen Investment Trust (CIT) has announced to give additional 1 per cent return to the participants of its Employee Saving Growth Retirement Fund programme.

It said in a statement on Tuesday that additional return on the savings was announced as per the provision of Retirement Fund Operation Precdure. Information Officer of CIT Uddab Silwal stated that about Rs. 1.03 billion will be distributed to the participants of the Retirement Fund.

“The Fund has hopes that this new facility would give some relief to the members of the fund,” it said.

The additional money is deposited to the accounts of the beneficiaries.

CIT said that it had adopted a policy to continue additional return on top of the interest in the savings.

It also stated that additional benefits would be provided to the other programmes as well.

Published in The Rising Nepal daily on 30 June 2021. 

World Bank gives Rs. 18 bn concessional loan

Kathmandu, June 27

The Government of Nepal and the World Bank have signed a $150 million (Rs. 17.78 billion) concessional loan agreement to support Nepal’s resilient recovery from the COVID-19 pandemic, protect the most vulnerable, and support sustainable growth.

Finance Secretary Sishir Kumar Dhungana and WB’s Country Director for the Maldives, Nepal, and Sri Lanka, Faris Hadad-Zervos signed the agreement on Sunday.

“The project will help Nepal build back better and greener through reforms to the tax and customs systems, public investment management, environmental regulations and debt management,” stated Dhungana.

He said that the proposed budgetary support will be utilised in the physical infrastructural projects and economic recovery sectors as per the requirement and priorities of the Government.

The facility further supports reforms aimed at protecting the most vulnerable and supporting business growth, said the WB in a statement.

Reforms in this area focus on social protection, the intergovernmental framework, and supporting access to capital for firms. It will help speed up the ongoing large development projects to creates job, accelerate markets, and support green recovery, read the statement.

The financing will be provided to Nepal through budgetary support.

“This project will help the country achieve sustained growth during and after the COVID-19 pandemic that is inclusive, job-creating and environmentally sustainable.,” said Hadad-Zervos.

The World Bank is committed to support the government’s pandemic response to protect lives and stimulate economic recovery in Nepal, he said.

Published in The Rising Nepal daily on 28 June 2021. 

Office for Kaligandaki-Tinau Diversion established in Butwal

Kathmandu, June 26

The government has set up an office for the Kaligandaki-Tinau Diversion Multipurpose Project (KTDMP) in Butwal Sub-metropolitan City.

Deputy Prime Minister and Minister for Finance, Bishnu Prasad Paudel, inaugurated the office on Saturday amidst a programme. The project aims at irrigating land in Rupandehi and Kapilvastu districts in Lubini Province and generating 126 Megawatt electricity by diverting the Kaligandaki River to the Tinau River.

According to the primary estimates, the ambitious project would be developed at the cost of Rs. 138 billion.

DPM Paudel has earmarked budget for the making of the Detailed Project Report (DPR), project implementation framework and resource management of the Kaligandaki-Tinau project along with other seven large river diversion projects.

The government has long been including the project in the budget for the last six years.

Inaugurating the office, he said that the pride project would help in changing the face of the nation through agricultural development and electricity generation. He appealed one and all to contribute to make the project a successful one.

He expressed his commitment that the project would have enough resources. “The government would make sure that the project would not face shortage of financial and human resources. I urge all to help in materialising the project,” said DPM Paudel, who is represented Rupandehi in the Parliament and now has the responsibility of Home, Industry and Commerce, and Energy ministries as well.

Project Chief Santosh Kaini said that the DPR of the project would be prepared soon. “The DPR will be prepared within a year and construction work begin from the Fiscal Year 2022/23,” he said.

A dam will be constructed 2.3 kilometre downstram Ramdi in the Kaligandaki and sent to the Tinau through a 27 km tunnel. About 83 cubic metre water per second would be sent through the tunnel. After the completion of the project, there would be enough facility for irrigation f 100,000 hectare land in Rupandehi and Kapilvastu. Likewise, 100 MW electricity would be generated in the Tinau River at Dovan of Palpa district and 26 MW at Belbas of Butwal.

Kaligandaki-Tinau is one among 11 river diversion projects being materialized in the country.

Published in The Rising Nepal daily on 27 June 2021. With inputs from Butwal correspondent. 

Central bank in pressure to bring expansionary monetary policy

Kathmandu, June 25

 Governor of the Nepal Rastra Bank Maha Prasad Adhikari has said that the central bank was in pressure to bring in expansionary monetary policy for the next fiscal year 2021/22 in order to heal the bruises and wounds the COVID-19 pandemic inflicted to the business and economy.

"The NRB should also design its monetary policy in a way that it would support in achieving the 6.5 per cent growth rate next year," he said speaking at a virtual discussion on the monetary policy of the next FY organised by Management Association of Nepal (MAN) on Friday.

However, policies and programmes designed to address these two important aspects of economy will certainly create pressure on price stabilisation, said Adhikari.

He maintained that the NRB was studying the situation and the possible measures to create balance between these mutually contradictory aspects.

According to the governor, while the central bank was expecting that the situation would have moved to revival now, but the financial condition was not much encouraging.

"There is pressure on the balance of payment as about Rs. 25 billion to Rs. 30 billion is consumed in a month. Current account deficit has reached Rs. 250 billion. Liquidity situation is not comfortable," he said.

Governor Adhikari also said that the central bank has taken the ideas like differential interest rates for manufacturing and other business sectors positively.

Speaking on the occasion, President of Nepalese Chambers of Commerce and Industry (FNCCI), Shekhar Golchha said that economic recovery was subject to the country's ability to check the spread of virus and save people from it through vaccination.

"In normal situation, private sector has more interest in fiscal policy but the pandemic has forced us to turn to the central bank in a hope to get economic relief and rehabiliation support via Monetary Policy," he said.

Golchha stated that tourism, hospitality and advertising are the most affected business sectors and the NRB should facilitate them in obtaining business continuation loan, refinancing and other discounts.

He also said that the concept of project financing should be applied as soon as possible.

Satish Kumar More, President of Confederatio of Nepalese Industries, suggested the central bank to raise the limit of refinancing to 20 per cent of the business exposure size from the current up to 20 per cent of the loan obtained.

Foremer Executive Director of the central bank and chairman of Nepal Bank Limited Basudev Adhikari recommended to redesign and reform the deprived sector lending. "It shold be rebranded in the name like the micro, small and medium enterprises (MSME) lending. This sector should also be digitalised at the earliest," he said.

Professor of Economics Dr. Ram Prasad Gyanwaly said that since most of the economic and trade activities of Nepal happen with India, the former should take Indian monetary system and rates into account.

He also suggested incrasing the Cash Reserve Ratio (CRR) at the banks and financial instutions (BFIs) to 4 per cent from the current 3 per cent.

Reeta Simha, President of Federation of Women Entrepreneurs Associaions of Nepal (FWEAN), demanded special loan facility for women entrepreneurs. The business body has been making this demand since the lockdown last year.

"The central bank should help women entrepreneurs upscale their business and enterprises. The documentation process should be simplified," she said while suggesting to design economic promotion package for returnee women migrant workers.

Pradyuman Pokharel, President of Development Bankers Association, said that the development banks should be allowed to increase their paid up capital through the issuance of right shares.

They should have the opportunity to manage government funds and mobilse deposits of financial institutions like Citizen Investment Trust and Employment Provident Fund, he said.

Ramesh Kumar Pokharel, former Executive Director of NRB, said that there was a challenge in implementing non-traditional and relief oriented programmes in a financial system dominated by commercial banks and collateral based lending.

Published in The Rising Nepal daily on 26 June 2021. 

NA session summoned for July 1

Kathmandu, June 24

President Bidya Devi Bhandari has summoned the summer session of the National Assembly for July 1.

According to the Office of the President, she has summoned the meeting as per the Cabinet decision of Monday

The meeting would be held at the International Convention Centre at Baneshwor in Kathmandu at 4:00 pm, according to a statement issued by the Office of the President on Thursday.

Published in The Rising Nepal daily on 25 June 2021.

Capital city announces budget of Rs. 19 billion

Kathmandu, June 24

Kathmandu Metropolitan City has presented the budget of Rs. 18.95 billion for the coming Fiscal Year 2021/22. It is larger by Rs. 2.53 billion than the budget of current FY’s Rs. 16.42 billion.

Deputy Mayor Hari Prabha Khadgi presented the estimates of income and expenditure for the next fiscal that intends to spend Rs. 3.75 billion in administrative operations, Rs. 10.8 billion in infrastructure development and Rs. 2.7 billion in social development.

Likewise, Rs. 1.15 billion is allocated for good governance and cross-cutting areas and Rs. 550 million for economic development.

The capital city aims to mobilise Rs. 4.34 billion from internal sources and Rs. 2.58 billion from revenue sharing of provincial and federal government. Other sources of income are Rs. 1.32 billion conditional grant from the federal government and Rs. 839 million unconditional grant from the provincial and central government while Rs. 7 billion would be mobilised from the existing bank savings.

Likewise, Rs. 1.5 billion would be available from the social security allowance and Rs. 1.37 from other external sources.

The KMC has proposed to expand the tax net while offering discounts in revenue. Considering the impact of the COVID-19 pandemic on the economic and business activities, all fines on tax dues are waved off.

Shakya said that the metropolis was not for increasing the rates of the taxes. He announced up to 90 per cent discount in property tax. The largest of it - about 80 per cent - is offered to the tourism sector businesses while additional 10 per cent discount would be provided to those who pay the tax by mid-January 2021.

Likewise, Rs. 25,000 or 10 per cent discount is announced in rental tax. Businesses with toilet facilities for the common people will be entitled for 50 per cent discount in business tax.

Meanwhile, Lalitpur Metropolitan City (LMC) could not present its budget due to political dispute. The metro was supposed to present its budget at the sixth meeting of its 135-member municipal assembly scheduled for 11 am Thursday.

However, 92 assembly members belonging to the CPN (UML) and CPN (Maoist Centre) boycotted the meeting, claiming that they had not been given enough time to discuss the city’s policies and programmes beforehand. They accused Mayor Chiri Babu Maharjan, who along with Deputy Mayor Gita Satyal, was elected from the Nepali Congress, of trying to force the budget on them.

However, LMC did present the total size of its budget for the fiscal year 2021/22 at Rs. 5.55 billion.

 Published in The Rising Nepal daily on 25 June 2021. 

Women-led businesses earn less, women paid lower for same jobs

Kathmandu, June 23

Annual profit of a business run by female managers in Nepal is slightly above a quarter of what the entities run by male managers.

Female-led businesses earn Rs. 343,000 profits on an average in a year which is just 28.5 per cent of the annual gain of the male-led businesses – Rs. 1,200,000, according to the latest analytical report of the Economic Census 2018 published recently by the Central Bureau of Statistics (CBS).

The gap is the widest in Bagmati Province with female- and male-led businesses earning averate profits of Rs. 478,000 and Rs. 2,004,000, and the narrowest in Karnali Province with Rs. 278,000 and Rs. 593,000 respectively.

Businesses with female managers in Province 2 earned the lowest profits compared to other provinces, their average profits were just Rs. 241,000 per establishment.

There are about 273,436 (29.6 per cent) entities led by female managers of the total business establishments of 923,356. Likewise, 29.8 per cent of busiensses are owned by women as of April 2018. 

In the provinces, Bagmati has the highest number of women managers because it has the highest number of businesses as well. There are 95,656 female managers against 186,422 male counterparts.

Sudurpaschim has the smallest size of busiensses led by women – 12,959 while male managers run 50,003 establishments.

The census has other startling results in terms of business leadership as well. It found that women are crowded around the jobs that pay less while higher income positions are hold by men.

About 138,000 men and 191,000 women are engaged in jobs that pay less than Rs. 7,600 a month while male-female numbers in the positions that pay Rs. 15,000-Rs. 25,000 is 1,197,000 and 283,000. This is 80.9 per cent and 19.1 per cent ratio.

Similarly, 87.8 per cent jobs that yield more than Rs. 25,000 a month are held by men while only 12.2 per cent of such employments are occupied by women.

“One of the reasons why the amount of cash income of female is smaller than that of male workers would be that not many female workers take leadership positions and professional occupations,” read the report.

 

Same position, different income

According to the survey, women earn less than their male counterparts even though their positions are the same.

Average monthly income of a male manager is Rs. 32,000 while his female counterpart earns Rs. 25,500 which is 0.80 ratio. The payment gap is the lowest in technicians and associatte professionals with 0.95 ratio folllowed by skilled agricultural workers with 0.94 ratio.

The widest payment gap is in professionals where women earn only half of the male job holders. Likewise, the payment ratio of female to male is just 0.53 for plant and machine operators and assemblers. This is the reason why the amount of cash income of female is smaller than the male.

However, the proportion of the businesses which have or used to have loans facility is almost same between the establishmen led by men an dwomen. The percentage of the businesses led by male and female that obtained the loan facility is 36.1 per cent and 34.3 per cent respectively.

According to the CBS, an agency under the National Planning Commission, gender disparities in Nepal are stark with female literacy being less than 20 per cent of male while only 26 per cent women have access to property rights, and only 26.3 per cent participate in labour.

In additoin to societal aspects, women are disproportionately more involved in unpaid housework than men, said the CBS.

Published in The Rising Nepal daily on 24 June 2021. 

IBN approves Rs. 97 billion investment for hydel projects

Kathmandu, June 22

The Investment Board of Nepal (IBN) has approved investment worth Rs. 97 billion for large hydropower projects.

A meeting of the board held on Tuesday approved estimated investment of US$ 540 million for Upper Tamor Hydroelectricity Project, and Rs. 33.41 billion for Lower Manang Marsyangdi Hydroelectricity Project.

The meeting led by IBN Chairman, Prime Minister KP Sharma Oli, also accepted the Detailed Project Report (DPR) of the China-Nepal Friendship Industrial Park being developed in Damak of Jhapa district and directed the Office of the IBN to make preparations for the Project Development Agreement (PDA) signing agreement with the developer.

The high-tech industrial infrastructure would be developed in 1,600 hectares of land at a cost of Rs. 113 billion. However, it will be developed in four phases and the IBN had approved the investment of US$ 586 million in the first phase. First phase will be completed in three years.

Likewise, it approved the draft of memorandum of understanding to be signed with the developer of the 679 Megawatt Lower Arun Hydroelectricity Project –SJVN India Limited- to issue license for the survey of the project in Sankhuwasabha district.

The meeting has decided to instruct the Ministry of Energy, Water Resources and Irrigation to make reforms in legal provisions to issue license for the survey of reservoir-based 756 MW Lower Tamor Hydroelectricity Project.

Similarly, a committee is formed under the leadership of the Vice-Chairman of the National Planning Commission to prepare investment framework of the joint hydroelectricity project of West Seti and SR-6 and recommend it to the IBN.

A direction is also issued for the Office of the IBN to take further the process of land compensation at the Chyankuti-Diding section of Arun-III Hydroelectricity Project’s access road.

The 900-MW project is being developed by the SJVN in Makalu Rural Municipality in Sankhuwasabha district. Estimated cost of the project is Rs. 104 billion while another Rs. 11 billion will be invested in transmission line construction to supply electricity from the project. Nepal will get 21.9 per cent, or 197 mw, energy and 29 per cent equity in the project free of cost.

PM Oli directed to make decision about the hydroelectricity projects only taking transmission line as well as the consumption and export of the electricity generated into consideration.

“We must not continue the mistakes that we made in the past, otherwise we will generate electricity but fail in the construction of transmission lines but continue to pay the price of the wasted energy,” he said.

Stating that the country should develop effective plans for the transmission system along with the energy projects and implement them in coordination with the respective agencies, he directed the concerned stakeholders to make necessary collaboration and facilitation in such initiatives.

According to him, to increase the consumption of generated energy within the country, industrial development must be expedited.

Finance Minister Bishnu Prasad Paudel emphasised that the proposals forwarded to the meeting of the IBN should be effectively implemented as they had the potential to support in the economic development of the country.

Published in The Rising Nepal daily on 23 June 2021. 

Dahal appointed NBL board member

Kathmandu, Jun. 22

Joint Secretary of the Ministry of Finance Suman Dahal has been appointed a member of the Board of Directors of Nepal Bank Limited.

He took the oath of office from chairman of the bank Madhu Kumar Marasini on Monday, NBL said in a statement.

After taking the oath, Marasini welcomed Dahal at the BoD and expressed his hoped that the latter would play an important role in achieving the goals of the company.

Dahal assured the company that he would play a role to contribute to the growth of NBL.

Chief Executive Officer of the bank Krishna Bahadur Adhikari and other high officials were present on the occasion.

Published in The Rising Nepal daily on 23 June 2021. 

CIT announces ‘special borrowing’ for tourism sector employees

Kathmandu, Jun. 20

Citizen Investment Trust (CIT) has announced ‘special borrowing scheme’ for the employess of the tourism sector.

This scheme offers an opportunity to the tourism-sector workers to obtain money borrowing facility from their savings at the CIT with zero interst rate gap.

“The workers of tourism sector including hotel, trekking, and aviation are the most affected by the global COVID-19 pandemic. This sector is the worst hit by the pandemic and the subsequent lockdown,” CIT said in a statement on Sunday.

The facility is available for the participants of the ‘Employees Saving Growth (ESG) Retirement Fund’ of the company. The participants can enjoy the borrowing facility at the same interest rate that the CIT is offering to their savings, read the statement.

The participants can obtain up to 50 per cent of their total deposits as per the scheme which will remain in effect till mid-January 2022. The borrowed money should be repayed within two years.

Published in The Rising Nepal daily on 21 June 2021. 

Mega Bank launches phone loan facility

Kathmandu, June 20

Mega Bank Limited has announced phone loan facility of up to Rs. 200,000.

Our customers can immediately benefit from the loan facility using their smart phones, the bank said in a statement on Sunday.

It said that the facility was designed in cooperation with F1 Soft International, the company that operates the e-payment platform e-Sewa.

As per the scheme, employees of various companies or organisations who have their salary account maintained at the bank can obtain maximum Rs. 200,000 loan for a period of 30 days.

Digital and e-Banking Chief of the bank Bishwo Singh said that the scheme provides quick service to the customers as it doesn’t need any paper documents and everything is processes through the phone.

The applied money would be deposited in the bank account of the applicant through a virtual credit card. Customers need not visit the branches of the bank to obtain the facility.

Published in The Rising Nepal daily on 21 June 2021. 

Three years on, provincial governments doing poorly in budget implementation

Kathmandu, June 19

Provincial governments have failed to show much progress in spending the budget they prepare and announce year after year and are unlikely to perform better anytime soon in absence of radical steps.

In the 10 months of the current Fiscal Year 2020/21, no province has utilised more than 40 per cent of its budget, according to their budget speech presented last week at the respective Provincial Assembly.

Although most of the provinces have stated that their total budget mobilisation would surpass last year’s record, statistics for this year are not encouraging as their projection of total spending is below 75 per cent of the estimated expenditure.

Karnali Province’s budget expenditure estimation for this Fiscal Year 2022/21 is only 46.4 per cent of the total allocation of Rs. 33.74 billion. Experts said that with this meager spending, it would be difficult to achieve the human as well as economic development targets.

Budget for FY 2020/21 and expenditure estimates

Province	Budget size  (Rs. in billion)	Expenditure  estimate (%)
Province 1	40.89	60
Province 2	33.56	62.5
Bagmati	51.42	74
Gandaki	34.84	NA
Lumbini	36.35	NA
Karnali	33.74	46.4
Sudurpaschim	33.38	72.6

Source: Provincial budgets

If one should believe in the estimates of the provincial governments, Bagmati, Lumbini and Sudurpaschim provinces would register the highest budget mobilisation this year. Bagmati Province budget mobilization is estimated at about 74 per cent of the total allocation. It has utilised only 38 per cent of its budget in 10 months of the current FY.

Lumbini Province has mobilised about 57.35 per cent of its budget by mid-June, a month before the FY concludes in mid-July. As the culture to spend large chunk of development budget in the final months of the year spreads to the provinces as well, hopes are high that Lumbini would make better spending.

Likewise, Sudurpaschim has hopes of mobilising 72.6 per cent of from the current year’s budget. Province 1 has mobilised 40 per cent of its budget in 10 months and estimates to spend as much as 60 per cent by the year end.

Province 2’s budget spending is expected to reach 62.5 per cent, as mentioned in the budget speech of the coming Fiscal Year 2021/22.

Similarly, Gandaki Province has mobilised about 37.76 per cent of the total budget in the 10 months of the current fiscal. It is up by 22.76 per cent compared to the previous FY. It has not announced the estimate for the total budget mobilization.

COVID-19 an excuse

All the provincial governments said the main reason behind poor budget performance is the COVID-19 pandemic. For example, Minister for Economic Affairs and Planning of Karnali, Gopal Sharma, said that both the capital spending and revenue mobilisation are affected by the pandemic.

However, experts, administrators and private sector say that the provinces are weak at project preparation and monitoring.

Dr. Shanta Raj Subedi, former Finance Secreatary, said that the provincial budgets have become the victim of high aspirations without proper foundation and capacity.

“Provinces lack key infrastructure to mobilse the budget, qualified human resources and organisational structure. It seems that the weaknesses and challenges at the federal government have been transferred to the provinces,” he said.

Dr. Subedi also mentioned the political bickering, distributory budget, and lack of project preparedness for the poor budget performance.

 

Tokenism

Provinces primarily lack the expertise or seriousness in project preparedness. They are scattering the resources to many projects, most of them small or medium, instead of focusing on a few key programmes.

“Tokenism is in practice in the provinces. It seems that they want to make everyone happy with many projects but execution is poor. There are problems in following the fundamental principles of budget,” said Economist Dr. Dilli Raj Khanal who once led the Public Expenditure Review Commission.

According to him, there is a trend to allocate budget haphazardly and failure to implement the programmes. To take an instance of distributory programme, the Election Constituency Development Programme is given continuity in the provinces, except in Lumbini, although the federal government has scrapped the scheme from the next fiscal year.

 

 

Lack of focus

Private sector has felt that the subnational governments lack infrastructure and trechnical expertise to mobilise the budget in time and to the full capacity.

“They stick their hands in multiple projects and none is delivering good results. Likewise, poor allocation is another problem. They allocate just about 7-10 per cent of the total project cost even in a medium project worth Rs. 800 million,” said Rabi Singh, President of the Federation of Contractors Associations of Nepal (FCAN).

Finance Secretry Shishir Kumar Dhungana attributed poor budget mobilisation of the provinces to the lack of allocative efficiency. According to him, budget allocation should be made after a thorough study and preparations which demands technical human resources as well as the capcity on the part of the subanational governments.

 

Human resource adjustment

Although the provinces have been demanding to provide sufficient technical and administrative manpower, the federal government has failed in addressing their demands.

The government at the centre has failed to complte employees adjustment in time. Even after three years of the creation of provincial structures, none has got the required human rsources, said Dr. Subedi.

He said that the federal government should immediately hand over the structrues to the provinces and help in increasing their capacity in project preparedness and budget mobilisation.

According to Singh, provincial governments should pay enough attention to project preparedness, increase human resources for monitoring and evaluation of the programmes and allocate sufficient budget for the projects in progress.

Dr. Khanal also suggested focusing on preparedness and implementation as well as to intensify the monitoring of budget spending.

Meanwhile, the federal governmant has tried to address the manpower problem through the budget of the coming FY 2021/22. Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel has announced in the budget that the recruitment of employees will be conducted twice a year against the current practice of hiring once a year.

Dhungana said that the complain about lack of sufficient human resource is a valid one and activation of the provincial Public Service Commission would be a major step towards solving the problem.

“However, it is the responsibility of provinces to mobilise the budget they make considering their weaknesses and available resources. They must not be blaming others for it,” said Dr. Subedi.

 Published in The Rising Nepal daily on 20 June 2021. 

ICT sector suggests creating safe cyberspace in a year

Kathmandu, Jun. 18

Information and Communication Technology sector organisations have jointly suggested the government to establish safe and flexible cyberspace within a year and create institutional and organisational infrastructure for it.

Computer Association of Nepal (CAN) Federation, Centre for Cyber Security Research and Innovation (CCSRI) and Information Security Response Team Nepal (ISRTN) have recommended the government, in their feedback to the draft of the National Cyber Security Policty, 2021, to take the sensitive issue as an urgent task.

In the draft, the government has proposed to establish the safe cyberspace in three years and create infrastructure in five years.

"Cyber security is a very sensitive issue, therefore the policy and infrastructure should be created as soon as possible," the three-organisations said in a statement on Friday and urged the government to implement the policy in three months rather than the proposed 12-months period.

Representatives of the three organisations had met Secretary of the Ministry of Communication and Informational Technology Hari Prasad Basyal and handed over the feedback to the draft. The Ministry had asked feedback, suggestions and opinions on the draft.

The delegation led by President of CAN Federation Nawaraj Kunwar included its immediate past president Hemanta Kumar Chaurasiya, general secretary Narayan Thapa, member Subhas Khadka, CCSRI's president Prof. Dr. Subarna Shakya, vice president Roja Kiran Basukala, general secretary Shalik Ram Parajuli and ISRTN's president Chiranjibi Adhikari.

The delegation had suggested the government to create legal and policy framework for the cyber security and check the cyber-crime at the provincial level.

Submitting their suggestions in 23 points and offering additional 34 recommendations for new inclusions, the three organisations urged the government to create easy access to the digital signature and provide the facility free of cost.

They have expressed their concerns to the security of the sensitive information of citizens and suggested formulating laws on cyber insurance and creating data exchange infrastructure to share information with the national and international service providers.

Published in The Rising Nepal daily on 19 June 2021. 

Stakeholders suggest creating manpower for risk management

Kathmandu, Jun. 18

Stakeholders have suggested developing human resources needed for the insurance and risk management.

Speaking at the second anniversary programme of the Nepal Insurance and Risk Management Association (NIRMA) organised virtually on Friday, they said that with the growth of insurance industry in the country, there is a need for more competent insurers, actuaries, insurance agents and other service providers.

Former chairman of the Insurance Board Nepal Prof. Dr. Fatta Bahadur KC indicated to the need for the advanced training and seminars to enhance the capacity of the manpower in risk assessment.

"Dissemination of information to the common people about the ways to reduce the risk is more crucial. Stakeholders should join their hands in generating awareness. It will ultimately help in the expansion of insurance business," he said.

Chairman of NIRMA Dr. Rabindra Ghimire said that the organisation's major objectives were to conduct study and awareness programmes in risk management, insurance and social security sector.

"We want to collaborate with all relevant stakeholders in this regard," he said.

President of Actuarial Society of Nepal Prekshya Mathema pointed towards the urgent need to create fresh human resources for the actuary.

Published in The Rising Nepal daily on 19 June 2021. 

CNI urges govt. to provide vaccines to workers

Kathmandu, Jun. 17

Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel has said that the government has expedited the process to procure vaccines against the COVID-19.

Talking to the office bearers of the Confederation of Nepalese Industries (CNI) on Thursday, he stated that the government was making its efforts to inoculate all citizens by procuring vaccines from India and other countries.

According to a statement issued by CNI, DPM Paudel has taken the implementation of the budget of the next Fiscal Year 2021/22 as a test. “All the preparatory works will be completed before the end of the current fiscal year and execution will begin from the very first day of the next year,” he said.

CNI President Satish Kuamar More urged the government to create an environment to run economic activities in order to attain the growth rate of 6.5 per cent aimed for the next fiscal.

“Without the expansion of economic activities, meeting the growth target will be difficult to achieve. Therefore, many of the programmes announced by the budget should be addressed appropriately in the Monetary Policy of the next year,” he said.

Stating that the Nepal Rastra Bank had created a provision to approve every decision in 7-15 days, More urged the DPM to create such rules for every ministry as well.

He said that vaccination for the staff and workers in the industries of private sector should be in the government priority list.

He also urged the government to allow the private sector to import vaccines stating that it would facilitate  to inoculate a large number of people.

Published in The Rising Nepal daily on 18 June 2021. 

World Bank to give $150 million for pandemic response, recovery

Kathmandu, Jun. 17

The World Bank’s Board of Executive Directors has approved a $150 million development policy credit to support Nepal’s resilient recovery from the COVID-19 pandemic.

A statement issued by the WB headquarters in Washington, USA, informed that the support is aimed at protecting the most vulnerable, and supporting sustainable growth.

 “Amid the economic and social impacts of the pandemic, our priority is to provide immediate relief to affected populations and support Nepal’s green, resilient, and inclusive recovery,” stated Faris Hadad-Zervos, World Bank Country Director for the Maldives, Nepal, and Sri Lanka.

It is supposed to help strengthen Nepal’s institutions and regulations, including its tax and customs system, debt management, and public capital spending.

It will also support the immediate health response and help modernise social protection programmes, build access to capital and digital solutions for the private sector, and lay a regulatory foundation for a green recovery, read the statement.

“This development policy credit supports the government of Nepal’s efforts to address the social and economic impacts of COVID-19 and overcome structural constraints to a resilient economic recovery,” said Kene Ezemenari, Senior Economist and the World Bank’s Task Team Leader for the programme.

Published in The Rising Nepal daily on 18 June 2021. 

Govt calls for tax payment by July 9

Kathmandu, June 16

The government has urged one and all to clear the due taxes by July 9.

The Inland Revenue Department (IRD) has issued a notice urging to submit the taxes and Value Added Tax (VAT) of Nepali month Chaitra of 2077 BS (mid-March to mid-April) and Baisakh of 2078 BS (mid-April to mid-May).

The IRD issued the notice a day after the court verdict that opened the way to collect taxes even during the lockdown period. A court decision last year had barred the government to collect taxes before 30 days after the lifting of lockdown or restrictions.

On Tuesday, the court had given its verdict in favour of the government and opened the way to raise taxes as per the provisions of the Financial Act.

According to the notice, the details of the tax deducted in advance, as per the VAT regulations, for the month of Baisakh should be submitted within the given date.

Likewise, the details of income tax and excise duty of the two months should be submitted before July 9 along with the details of tax deducted in advance and business details.

Charges for education service, telephone ownership and telecommunication service should also be submitted within the same deadline.

Earlier, private sector organisations like the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) had urged the businesses to pay the taxes if they had the capacity to do so.

 Published in The Rising Nepal daily on 17 June 2021. 

Labour law crucial for Decent work in Asia Pacific

Kathmandu, June 16

Exclusion from national labour laws and high levels of informality continue to take a heavy toll on the working conditions of domestic workers in the Asia and the Pacific region, according to a new International Labour Organization (ILO) report launched on Tuesday.

The United Nations Agency said that 10 years after international convention, domestic workers still fight to be recognized as workers and essential service providers.

The report ‘Making Decent Work a Reality for Domestic Workers: Progress and Prospects in Asia and the Pacific - Ten Years after the Adoption of the Domestic Workers Convention, 2011’ highlights that the majority (61.5 per cent) of domestic workers in Asia and the Pacific are fully excluded from coverage under national labour laws while 84.3 per cent remain in informal employment, read a statement issued by the ILO.

The Philippines is the only country in Asia and the Pacific to have ratified the Domestic Workers Convention 10 years on from its adoption.

According to the report, there are some 38.3 million domestic workers over the age of 15 employed in Asia and the Pacific of whom 78.4 per cent are women. The region is also the largest employer of male domestic workers, accounting for 46.1 per cent of male domestic workers worldwide.

Available data indicates that the vast majority of domestic workers in the region do not have any legal limits on their working time (71 per cent), nor any legal entitlement to weekly rest (64 per cent) under current labour laws. The report also finds that domestic workers typically earn some of the lowest wages in the labour market, especially when they are informal.

COVID-19 is also estimated to have had an outsized impact on domestic workers in Asia and the Pacific with high levels of informality and lack of legal protection leading to job losses, estimated at 2-3 times higher than other workers.

Likewise, domestic work in the Asia and the Pacific region is performed largely by women (78.4 per cent) however, the region is also the largest employer of male domestic workers, accounting for 46.1 per cent of male domestic workers across the world.

“There is an urgent need to formalize domestic work in the Asia Pacific, starting with the inclusion of domestic work in labour and social security laws, to ensure that these vital workers are offered the protection and respect they deserve,” said Chihoko Asada Miyakawa, Assistant ILO Director General and Regional Director for Asia and the Pacific.

Published in The Rising Nepal daily on 17 June 2021.

Provinces present COVID-centred budget of Rs. 261.8 billion for FY 2021/22

Kathmandu, Jun. 15

Seven provinces in Nepal have announced the combined budget of Rs. 261.82 billion for the coming Fiscal Year 2021/22 on Tuesday with aims to control and treat COVID-19, develop health, tourism and connectivity infrastructure, modernise agriculture and create jobs.

It is Rs. 2.38 billion smaller than the budget of the current fiscal year. The total size of provincial budget in the current fiscal year is Rs. 264.20 billion.

Bagmati Province has announced the largest budget among the seven provinces. It has come up with the budget of Rs. 57.72 billion while Gandaki Province has the smallest budget of Rs. 30.03 billion. Likewise, Province 2 has announced the budget of Rs. 33.79 billion,  Lumbini Rs. 40.95 billion, Karnali Rs. 36.54 billion and Sudurpaschim Rs. 30.33 billion.

 

Province 1

The Province-1 government has unveiled a budget of Rs. 32.46 billion for the fiscal year 2021/22.

Minister for Economic Affairs and Planning of the province Tanka Angbuhang Limbu presented the budget in the province assembly on Tuesday.

Out of the total allocation, Rs. 14.16 billion has been set aside for recurrent expenditure, Rs. 15.05 billion for capital expenditure, Rs. 3.22 billion for financial transfer at the local level and Rs. 30 million for financial management.

The government has given priority to the health sector in the new budget by allocating Rs. 3 billion for the sector. It has prioritised COVID-19 prevention and control, including coronavirus vaccination programme for all.

The government has announced to develop Mechi and Dhankuta hospitals as 100-bed hospitals and upgrade other district hospitals to minimum 50-bed ones.  Oxygen storage will be arranged in the hospitals.

Rs 1.19 billion has been allocated for education, Rs. 1.90 billion for agriculture and Rs. 833 million for tourism. The government aims to establish a library in every school and gradually turn them into electronic ones.

The government has allocated Rs. 100 million for the Chief Minister's Youth Entrepreneurship Programme.

The government has adopted the policy of emphasising agricultural production through the programme called ‘My Agriculture, My Pride’.

The government has allocated Rs. 5 billion for the completion of Ghinaghat-Biratchowk-four lane road and other multi-year road projects.

The government has allocated Rs. 50 million for solar energy with an aim of supplying electricity to every household within two years and to promote electric stoves to increase electricity consumption.

 

Province 2

Province 2 government has unveiled budget of Rs. 33.79 billion for the next fiscal year. Its Minister for Economic Affairs and Planning Bijaya Kumar Yadav presented the budget at the Provincial Assembly.

The budget has Rs. 15.63 billion allocation to recurrent, Rs. 18.5 billion to capital and Rs. 100 million to financing expenditures with 46.26 per cent, 53.44 per cent and 0.30 per cent share in the budget respectively.

Funding of the budget would be Rs. 3.04 billion from internal revenue, Rs. 13.9 billion from federal government grants, Rs. 9.58 billion from revenue sharing and Rs. 6.25 billion from the budget savings of the current fiscal year. About Rs. 1 billion would be mobilised from the internal loan.

Yadav has given priority to COVID-19 control, prevention and treatment, development of agriculture, education and physical infrastructure, and creation of employment. Dialysis machines, provincial hospital, COVID hospital, Madhes Health Science Institute, and Ayurveda have got special attention in the budget.

 

Bagmati

The Bagmati Province government has presented a budget of Rs. 57.72 billion for the upcoming fiscal year, giving priority to prevent, control and treatment of COVID-19 pandemic.

Minister for Economic Affairs and Planning of the province Kailash Prasad Dhungel presented the budget in the provincial assembly on Tuesday.

The allocation for recurrent expenditure is Rs. 26.01 billion (45 per cent), while Rs 29.7 billion (51 per cent) has been allocated for capital budget and Rs. 2 billion (4 per cent) financing.

Minister Dhungel said that the government has introduced budget to revive the economic sector keeping in view the impact of the COVID-19 on the economic sector.

The budget has focused on food production, job creation, making public services more effective and building physical infrastructure that directly benefit the people.

The government has allocated Rs. 2 billion for the COVID-19 Province Chief fund for the COVID-19 vaccination programme for all the citizens that would run in coordination with federal government.

The government has allocated Rs. 500 million for the operation of electric buses in the coming year and Rs. 160 million for the subsidy to encourage milk farmers in all 13 districts of the province.

It has allocated budget for tunnel road and upgrading of existing roads and irrigation projects with high priority.

 

Gandaki

Gandaki province has announced the budget of Rs. 30.03 billion for the next fiscal. Chief Minister and Minister for Economic Affairs Krishna Chandra Nepali Pokharel announced the budget with the size less than Rs. 4 billion of the current year.

The size of recurrent, capital and financing is Rs. 13.6 billion, Rs. 16.7 billion and Rs. 734 million respectively. The share of the recurrent budget is 43.5 per cent, capital 55.7 per cent and financing 0.8 per cent.

Sources of the budget include Rs. 7.4 billion financial equalisation grant, Rs. 4.1 billion conditional grant, Rs. 873 million matching grant and Rs. 549 million special grant, Rs. 7.6 billion in revenue shares, Rs. 300 million in royalties and Rs. 4.98 billion from internal revenue.

Remaining budget will be managed from estimated budget saving of Rs. 2.1 billion in the current fiscal, Rs. 1 billion internal loan and Rs. 1 billion loan from the federal government.

The newly appointed CM of Gandaki has accorded priority to treatment, control and prevention of coronavirus, creation employment for youth who lost jobs to the pandemic, development and expansion of health and other physical infrastructure, rehabilitation of businesses, and modernisation of agriculture.

 

Lumbini

Minister for Economic Affairs and Planning Baijanath Chaudhary presented budget of Rs. 40.95 billion for FY 2021/22 which is Rs. 4.49 billion larger than the budget of this fiscal.

He allocated Rs. 14.93 billion to recurrent, Rs. 21.17 billion to capital and Rs. 4.84 billion for financing expenditures. Share of recurrent, capital and financing in the budget is 36.47 per cent, 51.71 per cent and 11.82 per cent respectively.

Sources of the budget are Rs. 8.2 billion financial equilisation grant, Rs. 6.2 billion conditional grant, Rs. 721 million matching grant and Rs. 634 million special grant, and internal revenue Rs. 4.29 billion, revenue sharing Rs. 13.2 billion, and royalty Rs. 1 billion.

Remaining funding would be managed from Rs. 7.05 billion savings of the budget of the current fiscal.

Minister Chaudhary said that the province would adopt ‘COVID first’ policy and provide free treatment to COVID-19 patients.

The budget has given priority to the development of agriculture, industry, tourism and infrastructure sector, and employment.

Minister Chaudhary said that special budget is managed for the development of human resources for tourism industry. 50 locations in the province would be developed as the tourist destinations.

Development of master plan for the new capital city and development if infrastructure has also received attention.

 

Karnali

Karnali Province government has unveiled a budget of Rs. 36.54 billion for the upcoming fiscal year.

Minister for Economic Affairs and Planning Gopal Sharma presented the budget of Rs. 36.54 billion in Karnali Provincial Assembly.

In the total budget, Rs. 21.65 billion (59 per cent) has been allocated for capital expenditure and Rs. 11.49 billion (31 per cent) for recurrent expenditure and Rs. 3.39 billion (10 per cent) for financial transfer.

The government has given priority to health, education, production and infrastructure development for the upcoming fiscal year.

Sharma said that the government has allocated Rs. 539.3 million for the prevention and control of COVID-19.

The government has allocated Rs. 231.5 million for tourism development in the province, Rs. 7.29 billion for road infrastructure and transport development, Rs. 1.79 billion for drinking water and sanitation, Rs. 687.4 million for irrigation and to contain river, Rs. 423.1 million for energy and Rs. 400 million for urban management.

Similarly, Rs. 1 billion has been allocated for agriculture self-employment and Rs. 590 million for sports.

 

Sudurpaschim

Sudurpashchim Province government has presented a budget of Rs. 30.33 billion for the fiscal year 2021/22.

Minister for Economic Affairs and Planning Prakash Bahadur Shah tabled the budget in the provincial assembly on Tuesday.

The province government has allocated Rs. 10.66 billion (35.1 per cent) for the recurrent expenditure, Rs. 17.65 billion (58.2 per cent) for capital expenditure, Rs. 1.72 billion (5.7 per cent) for inter-governmental finance transfer and Rs.300 million (1 per cent) for financing.

With the COVID-19 pandemic seriously affecting the economy, the province government has given top priority to health, development infrastructure, employment generation and agriculture.

In the coming fiscal year, necessary budget has been allocated for vaccination against COVID-19 and to manage necessary equipment to prevent and control COVID-19.

Similarly, health desks and holding centres will be made more effective at the main border points. The government has allocated Rs. 2.42 billion for upgrading hospitals and health services.

Rs. 10 million has been allocated for the construction of basic health buildings at the local level and Rs. 900 million for the management of pandemic and infectious diseases, including COVID-19.

Necessary budget has been allocated to declare the Sudurpashchim Province as a fully literate province within the next year.

 

Common goals

In their Policy and Programmes for 2021/22 published last week, the provinces had said that the focus of the budget would be on control and treatment of COVID-19 pandemic and infrastructure development as well as business rehabilitation.

However, since they do not have reliable source of income, major source of their funding comes from the grant of the federal government and shares in the revenue collected by the local bodies.

The federal government has allocated Rs. 57.9 billion for all provinces for the next FY.

The provinces should present their budget for the next fiscal year by mid-June (by the end of Nepali month Jestha).

The federal government had announced the budget on 29 May while the local bodies will present their estimates of income and expenditure for the next year by 25 June.

 

Jointly prepared with Laxman Kafle, with inputs from Gokul Parajuli (Province 1), Dharbendra Jha (Province 2), Ram Mani Dahal (Bagmati), Tara Chapagain (Gandaki), Chhabilal Pande (Lumbini), Lalit Basel (Karnali) and Abinash Chaudhary (Sudurpaschim).

Published in The Rising Nepal daily on 16 June 2021.