Tuesday, May 17, 2016

Budget, starting point of economic progress

'Policy audit' is needed: Thapa

Kathmandu, May 17: Finance Minister Bishnu Prasad Poudel Tuesday said that the upcoming budget would be starting point for the economic progress of the nation.
Speaking at Pre-Budget Discussion programme organized by the Society of Economic Journalists of Nepal, Minister Poudel stated that he was against distributive budget. “The new budget for the Fiscal Year 2016/17 will aim at creating employment and economic progress.”
He informed that he was receiving suggestions for employment generation, economic progress, and agriculture and energy sector development.
Gagan Thapa, chairman of Legislature-Parliament’s Agriculture and Water Resources Committee, urged the Finance Minister to create a calendar to implement the projects as it would take months to authorize the budget expenditure even though the government brought out the budget in time.
“There should be ‘policy audit’ in March and projects which are not implemented even after ten months of budget announcement should be scrapped,” he suggested.
According to Thapa, many laws were creating obstacles in development works. Therfore, bills like Electricity Act, Public Procurement Act, and Land Acquisition Act should be submitted to the Legislature-Parliament.
“National pride project Budhi Gandaki Hydropower Project’s progress is very slow. On the other hand, work on about 18 kilometres of Mid-Hill Highway which will be submerged by the project is on the full swing. Government should be careful of such spending,” he said.
Federation of Nepalese Chambers of Commerce and Industry’s president Pashupati Murarka pointed out that the industry sector in the country was severely affected by the energy crisis therefore upcoming budget should focus on energy development. “The government should try to eradicate the blackout within two years.”
Saying that the business community was not asking any facilities and special favour from the government, Murarka urged the Finance Minister to remove the non-tariff barriers of trade.
He also urged to formulate ‘exit policy’ for the businesses.
Economist Prof. Dr. Bishwambhar Pyakuryal suggested structural changes in the budget implementation and effective coordination among the government, National Planning Commission (NPC) and Nepal Rastra Bank (NRB).
“The agriculture should get top priority in the upcoming budget. In order to achieve 6 per cent economic growth in the next fiscal, about 10 per cent of the total budget should be allocated to the agriculture sector,” he said.
Former vice chairman of the NPC and governor of NRB, Dipendra Bahadur Kshetry warned the Finance Minister not to increase the budget allocated to the parliamentarians.
He suggested developing the agriculture sector so as it could compete with the Indian agro-products.
Kumar Pandey, general secretary of Independent Power Producers’ Association of Nepal (IPPAN) said that the custom tax of raw materials was higher than the finished goods. He urged the government to reduce the tax on raw materials.

Lawmaker Udaya Shamsher Rana, Nepal Bankers’ Association vice-chairman Anil Shah, Confederation of Nepalese Industries vice-president Satish More, Nepal Chamber of Commerce general secretary Kamlesh Kumar Agrawal and tourism entrepreneur Bharat Basnet stated suggestions of their respective field. 

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