Thursday, May 9, 2019

No populist schemes in budget: Dr. Khatiwada


Kathmandu, May 8: Minister for Finance Dr. Yuba Raj Khatiwada on Wednesday assured that no 'populist' programmes or projects without proper resource backup.

"Budget of the coming fiscal will give priority to the long term sustainable development and prosperity so the projects and programmes will be planned to fulfill the objectives," he said while speaking at the Finance Committee of the Parliament.

However, he didn't deny the inclusion of populist programmes in the budget of the coming fiscal year 2019/20, and said that without resource guarantee problems would arise during programme implementation.

Responding to the demand of the lawmakers elected from the proportional representation system to allocate budget for them as the directly elected parliamentarians, Dr. Khatiwada said that the money could not be given to them.

He said that the budget was allocated to the Local Infrastructure Development Partnership Programme and not given to the lawmakers directly.

A committee including the federal and provincial lawmakers of the respective election constituency and representatives of the local governments takes decision about the programme and budget allocation as per the bylaws formulated by the Ministry of Federal Affairs and General Administration (MoFAGA).

The bylaws has strict provision that the money allocated to the LIDPA can only be spent on 9 specific areas that contribute to infrastructure development and employment generation.

"The money is not given to the lawmakers but allocated to the respective election constituency. I urge the lawmakers elected from the proportional representative system not to take it as a programme to distribute money to the representatives," said the Finance Minister.

Former Prime Minister Dr. Baburam Bhattarai urged the Finance Minister to be practical and realistic while allocating resources to the programmes.

"Dare to be unpopular. The budget should be the combination of political slogans and economic reality," he said.

Meanwhile, the Finance Committee has recommended the government to consider the demographic factor while allocating the budget to the local bodies.

After conducting discussions with various local governments regarding the budget of the federal and provincial government, the committee asked both the government to be more objective and consider the population as well as the geographical condition while allocating the resources.

"Local governments have complained that a large part of the budget goes to the federal government. Current practice must be revisited," said a report of the committee.

It also suggested identifying game changer projects in each province and allocate additional budget to the provinces that are lagging behind in economic and human development index.


Published in The Rising Nepal daily on 9 May 2019. 

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