Wednesday, June 2, 2021

Govt will implement budget: Finance Minister

Kathmandu, May 30

 Finance Minister Bishnu Prasad Paudel said that the government would implement the programmes and policies presented in the budget of the coming fiscal year 2021/22 which he unveiled on Saturday.

Speaking at the post-budget programme organised by the Ministry of Finance (MoF) on Sunday, he responded to the doubts expressed by the economists, former finance ministers and opposition leaders and said, "I would like to assure that the government would implement it to the fullest and will achieve the targets set."

Although the budget pleased many sectors including business and social, some cast doubt if the budget could be implemented well given its large size and numerous programmes at the time of COVID-19 pandemic and resource crunch.

FM Paudel had unveiled the budget of Rs. 1647 billion aiming to control the pandemic, rehabilitate the businesses, strengthen the state welfare and create resilient economy. The budget is Rs. 173 billion larger compared to the current FY 2020/21.

He maintained that organised mechanism and system would be put in place for the effective implementation of the budget.

He said that the prime focus of the budget is to control, prevent and treat the COVID-19. Rs. 122.77 billion is earmarked for the health sector covering the development of health infrastructure and vaccines against coronavirus while relief and rehabilitation programmes for business and industry and relief to affected people were also announced separately.

According to FM Paudel, the government will put every efforts to save the lives of people from the deadly pandemic. He said the topmost priority of the government was to manage vaccines and very soon a significant size of population would be inoculated.

We are ready to fight the pandemic and a significant portion of the budget is channelised to the same direction, he maintained.

FM Paudel said that the government had presented the budget as per the constitutional provision to make it happen on Jestha 15 of the Nepali calendar that fell on 29 May.

"Do not be confused, we have announced the budget as per the constitution. The legitimacy of the government cannot be questioned by the speech of some political leaders," he stated.

The Finance Minister said that the government has not framed the budget to influence the voters but it is the duty of the government to formulate programmes and policies that show it is accountable to the public.

"We cannot run away from our responsibility. I don't think that I should be responding to the comments that the government should not have announced good programmes that could help the people and economy," he said.

Speaking on the occasion, Secretary of Finance Shishir Kumar Dhungana said that the revenue target would be met as the economic activities would significantly increase after the restrictions are lifted while the revival and rehabilitation programmes will help the business to grow which will result in higher revenue collection.

These programmes will help to achieve the target of 6.5 per cent economic growth, he said. 

"We are in a position to achieve 4 per cent growth rate even when economic activities began to happen after October last year. It shows Nepali economy bounces back quickly. When the lockdown is lifted, economic activities will be increased," he said.

Dhungana maintained that the government had tried to manage the resources without disturbing the fiscal framework. "This year, the size of loan in the budget was 35.61 per cent but it is 33.94 per cent for the next fiscal which is 11.59 per cent of the projected size of economy," he said.

According to him, most of the foreign loan will be mobilised to the development projects that will help in capital formation and large projects above the investment of Rs. 5 billion will be implemented as per the special purpose vehicle.

Revenue Secretary Ram Sharan Pudasaini said that duty discount is offered in industrial raw materials, medicines and household durables.

Likewise, Governor of the Nepal Rastra Bank Maha Prasad Adhikari stated that there was a prospect of 6.5 per cent growth in the next fiscal.

"In the immediate post-pandemic situation, the demand and supply both go up which will instantly boost the economy," he said.

Published in The Rising Nepal daily on 31 May 2021. 

No comments:

Post a Comment

Featured Story

Govt prepares primary draft of DRR Policy

Kathmandu, Apr. 29: The government has prepared the preliminary report of the National Disaster Risk Reduction (DRR) Policy and Strategic ...