Wednesday, May 18, 2022

Economic growth, balanced development are priorities of next year's budget

 Kathmandu, May 17

The government has announced that the budget of the coming fiscal year 2022/23 would give priority to 10 sectors including agriculture, industry, infrastructure including energy, tourism, social security and climate change.

Industrial development and promotion of private sector, revival of tourism, utilising the demographic dividend, international relations and partnership, and climate change and disaster management will also be the foundation of the next year's budget.

Presenting the 'Principles and Priorities of the Appropriation Bill, 2022', at the Federal Parliament on Tuesday, Finance Minister Janardan Sharma 'Prabhakar' said that the thrust of the budget would be rapid economic growth and balanced progress supported by infrastructure development.

"For this travelling time would be brought down with the improvement in road infrastructure. All weather road will be constructed to connect each local level with the national highways. Private sector will be roped in infrastructure development as per the public-private-partnership model," said FM Sharma.

Budget will also include policies and programmes for the development of tunnels, expressways, terminals in airports and completion of national pride projects.

Support to industrial development

Likewise, it will aim at increasing the contribution of the industrial sector to the national economy. For this, industrial zones and villages under construction would be completed in time and operated. Minister Sharma said that the private sector would be promoted as the engine of economic growth, and favourable policies and programmes would be formulated to support industrial development, Foreign Direct Investment, micro, cottage and small industries, and establish industrial zone in partnership with the private sector.

FM Sharma expressed concerns over the ever-increasing trade deficit and mentioned it as the greatest challenge to the economy.

Similarly, irrigation facility would be expanded to utilise all arable land across the country, access of farmers to market would be enhanced and contract farming would be promoted for the development of agriculture sector. Agricultural research, availability of inputs and technical support, and access of farmers to financial instruments are the priority areas in this regard.

For the development of the energy sector, resources would be managed for the construction of large and reservoir-based hydroelectricity projects, and energy would be provided to every household in the country through the development of micro, medium hydroelectricity projects and renewable energy. Energy infrastructure like transmission line and substation are in priority.

Revival of tourism

Tourism, the sector severely-hit by the COVID-19 pandemic, has got special mention in the government priorities for the upcoming budget and FM Sharma has mentioned that priority would be given to attract external tourists and promotion of internal tourism. Programmes will be implemented to revive the tourism business, and develop religious, cultural, adventure, entertainment and eco-tourism activities. Conservation of archaeological heritages and development of quality human resources are also in the priority.

Likewise, programmes will be announced to create employment opportunities for the active human resources. For the utilisation of the demographic benefit, sill-based training and capacity building programmes would be designed.

The budget would also be focused to ensure the access of people to basic health services. For this, programmes for the development of health infrastructure, health system, human resource and reform of health insurance will be announced. Improvement of the quality of education facilities and programmes will be included in the budget.

Integrated social security

FM Sharma also said that the programmes of social security will be operated in an integrated way and focus will be given to minimize income inequality. Similarly, balanced diplomatic relations with all friendly nations, promotion of economic diplomacy, strengthening of Nepal's presence at the international forums, and sustainable development of forest sector as well as climate change mitigation programmes are in priority.

Stating that the budget will be focused on the creation of the self-reliant economy by increasing the production of basic consumer goods through the promotion of agriculture and industrial sector, FM Sharma mentioned that export promotion and import substitution would be the major theme.

 

Allocation efficiency

He also tried to strike on the chronic problem of budget underutilisation and said that allocation efficiency and institutional capacity would be enhanced and fiscal discipline would be maintained. "Budget would be proposed only for the projects that are economically and technically feasible," said the Minister.

According to him, common minimum programme adopted by the government, fifteenth Periodic Plan, Sustainable Development Goals and Constitution have been the major guidelines while developing the principles and priorities for the budget. Likewise, poverty-hit Karnali, Madhes and Sudurpaschim provinces, deprived, Dalits and marginalised people are also taken into consideration.

   Published in The Rising Nepal daily on 18 May 2022. 

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