FM instructs staff to provide improved seeds in time

Kathmandu, Apr. 27

Finance Minister Janardan Sharma Prabhakar has directed agencies under the Ministry of Agriculture and Livestock Development (MoALD) to provide improved varieties of seeds to the farmers who plant paddy in coming May-June.

The Ministry of Finance (MoF) held a discussion with MoALD and its agencies including Nepal Agricultural Research Council (NARC) and the Department of Food Technology and Quality Control, and Nepal Bureau of Standard and metrology under the Ministry of Industry, Commerce and Supplies.

The discussion was focused on increasing the production of paddy, operating quarantine in a well-managed way, and standard certification.

During the discussion, FM Sharma said that there was a pressure to reduce the growing import of rice from this year. "I have been asking for two months to come up with a plan to distribute improved paddy seeds to the farmers but you (staff of the MoALD) have not shown any interest," he said.

He has directed them to come back for the second round of discussion on Thursday with the list of improved varieties of paddy seeds listed in Nepal, the importers, traders and the estimated data on the increase in production from the use of improved varieties of seeds.

"If we use improved varieties of seeds, we will produce at least three times more paddy this year. Let's not delay in doing this," he said while pledging to provide grant money to subsidise the cost of improved seeds on the part of the farmers.

"If you need a subsidy for improved seeds, tell us how much money you need. We will give it. It is seen that rice import can be reduced by billions by spending less money,” said the Finance Minister.

Agriculture Secretary Dr. Gobind Sharma said that instructions have been given to bring the seeds of listed quality after holding continuous discussions with the businessmen importing improved varieties of seeds. He informed that the productivity of paddy is 3.5 tons per hectare on an average.

Finance Secretary Madhu Kumar Marasini said that entrepreneurs should be encouraged to import seeds.

Published in The Rising Nepal daily on 28 April 2022. 

COVID-19, war to continue taking toll on national economy

Kathmandu, Apr. 27

Governor of the Nepal Rastra Bank (NRB), Maha Prasad Adhikari, said that the continuous increase of oil prices in the international market and impact of Russia-Ukraine war has created pressure on inflation.

"It will continue to impact our national economy. Meanwhile, there is a risk of new wave of COVID-19," he said while the NRB's 67^th anniversary programme organised at its office in Baluwatar on Wednesday.

He said that the central bank had announced various instruments and policies to revive the businesses and economy in the wake of the COVID-19 pandemic

The governor maintained that the policy measures taken by the NRB has contributed to stabilising the foreign currency reserve in recent months.

According to Adhikari, the previous year was the year of economic revival, so the central bank had brought a flexible monetary policy for the previous fiscal years 2020/21 and 2021/22 in order to revive and strengthen the economy.

He maintained that various measures were taken to attract Foreign Direct Investment and ease the earning of foreign currency since the very beginning of the current fiscal year as the reserves began to decrease.

The central bank had also implemented 50 per cent and 100 per cent cash margin while opening Letter of Credit for imports, put the limit on margin lending to Rs. 40 million from a bank and Rs. 120 million at maximum. Recently, the quota to import gold is brought down to 10 kg a day from 20 kg.

Governor Adhikari said that the NRB had mobilised more than Rs. 6200 billion to help the banks and financial institutions to cope with the liquidity crisis. Likewise, the NRB is studying the feasibility of implementing the digital currency.

Former Governor of the NRB, Dr. Tilak Rawal, said that the NRB has done a commendable job in addressing the economic challenges at difficult times during the pandemic and current external sector pressure.

"We must not forget that the symptoms of the economy are not good, and the international donors like the World Bank, Asian Development Bank and International Monetary Fund have estimated the economic growth rate at around 4 per cent but our government has not revised it from its earlier announcement of 7 per cent," he said.

He stated that trade deficit is likely to surpass the total size of the annual budget of the country. This year as well, the deficit will cross the budget size of Rs. 1632 billion.

"I don't see hopeful signs in the economic wellbeing of the country. We don't produce anything and import the basic food and essential goods that could be produced in the country. Why don't we plan to replace such imports and enhance export of made in Nepal goods?" said Dr. Rawal.

Dr. Rawal suggested a policy to replace the LP gas and cylinders with quality and economic supply of electricity as well as subsidy on induction cooker. 

Published in The Rising Nepal daily on 28 April 2022. 

NRAB to suggest Rs. 1.3 trillion revenue estimates for next year

Kathmandu, Apr. 26

The Nepal Revenue Advisory Board (NRAB) has said that the government should aim at collecting about Rs. 1300 billion in revenue in the coming fiscal year 2022/23.

Chairman of the RAB Mahesh Dahal said that the revenue ceiling was considered after reviewing the current status and future prospect. "Through the scientific and pragmatic point of view, Rs. 1.3 trillion revenue should be the target," he said while speaking at a pre-budget discussion organised by the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) here on Tuesday.

However, he maintained that the amount could slightly be modified before it is submitted to the government. The final report will be prepared in a week from now. There is Rs. 1180 billion target for the current fiscal year 2021/22 of which Rs. 811.8 billion (about 69 per cent) is collected as of Monday.

Dahal said that the country is at the Value Added Tax (VAT) deficit of Rs. 250 billion, and if this gap could be bridged, the government could be at a comfortable position in terms of resource management to fund the development works.

According to him, the country should go for the second-generation reform in the revenue sector, and need to review the VAT discounts whereby discounts on some goods and institutions should be curtailed or removed.

He said that the RAB was for the creation of business and investment friendly revenue policy. "It is an independent agency that bridges the government with the economic stakeholders," he said. Likewise, Dahal stressed on the application of technology in the revenue sector so that the efficiency of both the tax administration and entrepreneurs increased.

Cut down tax compliance cost

Speaking on the occasion, tax expert Dr. Roop Khadka said that tax compliance cost should be nominal. He also suggested the private sector to cease demanding the implementation of multiple rates of VAT since it will increase the tax compliance rate. "Why are you including the institutions like the FNCCI demanding the multiple rates of VAT? If your demands are met, you have to maintain robust account system to address the multiple rates," he said.

Similarly, he said that the VAT discounts on the essential goods that largely used by the poor are also used by the people of higher class.

"So, it is difficult to create justice in VAT implementation. Hence, the government should charge equal tax on the goods and develop social security policy to support the poor," said Dr. Khadka.

He also pointed out to the tax loopholes such as exporters don't need to pay tax, they enjoy zero VAT facility but they pay VAT while procuring their inputs such as vehicle, machines and furniture, and raw materials.

It has made Nepali products less competitive in the international markets. Entrepreneurs will be benefitted if they were charged with the VAT because they would get the refund of the tax they paid. But the VAT paid in inputs and raw materials is not refunded.

Likewise, hydroelectricity generators are paying about Rs. 20 million in VAT while procuring their equipment. Same is happening with the carpet export, according to Dr. Khadka.

Sandip Agrawal, Chairman of Tax and Revenue Committee at the FNCCI, demanded that the government should provide tax discount to a company if it reinvests 40 per cent of its profits in business expansion.

He also urged to clear the cases at the revenue tribunal. Cases equivalent to about Rs. 100 billion are pending at the tribunal. Businesspersons also expressed anger over the government delay in paying their dues as the former doesn't pay any interest to the due money even if it paid it years later.

Manoj Adhikari, President of Nepal Freight Forwarders' Association, asked the government not to charge TDS on the payment made to the transporters in India and airlines flying to Nepal while they are not subjected to comply Nepal's tax rules. 

Published in The Rising Nepal daily on 27 April 2022. 

Private sector threats inappropriate: Secretary Marasini

Kathmandu, Apr. 25

Finance Secretary Madhu Kumar Marasini expressed dissatisfaction over private sector's warning at times to shut down the industries and businesses, and hand over the keys to the government.

"When there is a small challenge, private sector entrepreneurs announce to shut down their industrial establishments and businesses, this will not help. Government is not there to manage their business," he said while speaking at a programme organised by Management Association of Nepal (MAN) to offer suggestions for the budget of the next fiscal year 2022/23.

According to Marasini, private sector orgnaisations should not engage in creating a cartel but hold dialogue with the government to formulate business-friendly policies.

"Private sector should take risk, government should only provide policy support. The private businesses must not try to get the government trying to support in every step and ask for incentives," he said.  

Marasini maintained that the external sector pressure is created by the supply chain constraints created by the COVID-19 pandemic, Russia-Ukraine war and increased production and transportation cost.

However, he said that foreign currency reserve is above pre-COVID time, there is no extreme volatility so we need not panic. According to him, the government is going to introduce more austerity measures to further control imports.

"Meanwhile, number of Nepali workers going for foreign employment has been increasing in the recent months which will provide a foreign currency cushion in the coming months with increased remittance," he said. "However, we need to be watchful for the next 4-5 months, but there is not a crisis."

Marasini informed that the international development partners and multilateral donors have shown a great support to Nepal, and even the International Monetary Fund (IMF) has provided credit facility to it with less harsher conditions.

 Stating that the private sector would be taken side by side in policy making, planning and business-environment creation, Marasini pledged continued government support for the revival of the sectors severely hit by the pandemic and still struggling to get back to normalcy.

He said that Nepal had higher share of capital allocation in total budget compared to India, Nepal has 23 per cent and India 19 per cent. "We have the trend of scattering budget to the projects without proper preparedness which should be corrected," he said.

Economist Dr. Bishwas Gauchan said that the country should restructure the entire budget.

According to him, the size of the budget should be around Rs. 1600 billion, about 30 per cent of the country's Gross Domestic Product, and revenue should be 25 per cent of the GDP by next year.

Stressing on the practice of evidence-based planning in every sector, Dr. Gauchan suggested prioritising hydroelectricity, road and irrigation in terms of budget allocation.

Likewise, Shekhar Golchha, President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), said that the Nepali economy is a plane running with a single engine i.e. remittance. When there is a problem in remittance, the economy catches ailment.

He said that the private sector can suggest the sectors that could grow and contribute to the economy if incentives were provided. According to him, Nepal has long been failed to attract Foreign Direct Investment (FDI) and need to review entire policy and process in order to facilitate the inflow of FDI.

Senior Vice President of Nepal Chamber of Commerce, Kamlesh Kumar Agrawal demanded for the reduction in customs duties and a raise in the ceiling of income taxes.

Neeru Rayamajhi Khatri, President of Federation of Women Entrepreneurs of Nepal, demanded the government to support their concept of national-level craft village in order to promote women entrepreneurs and small and medium enterprises.

Women entrepreneurs should be facilitated in trade promotion, marketing and capacity building like skill training, she said.

Pawan Kumar Golyan, Chairman of Confederation of Bank and Financial Institutions of Nepal, said that restriction as well as tariff and non-tariff barriers should be imposed on the imports of agricultural products.

"There is Rs. 150 billion bank investment in agriculture but results are not encouraging. There is heavy subsidy in fertilisers which has helped smuggling to India. Therefore, there should be an inventory of the need of seed, fertilisers and machinery," he said. 

Published in The Rising Nepal daily on 26 April 2022. 

President says disaster awareness should be created at community level

 Kathmandu, Apr. 24

President Bidya Devi Bhandari has pointed  out to the need to raise awareness at the community level about the disaster preparedness and precautionary measures.

In a message issued by the President on the Earthquake Memorial Day on Sunday, she said that the federal and state governments and the local levels have an important role to play in this endeavour.

Nepal observes the Earthquake Memorial Day on Baisakh 12, in Nepali calendar which falls on Monday, marking the day a powerful quake of 6.9 magnitude hit the country seven years ago on 25 April 2015.

Nepal is one of the most seismically risky countries in the world. President Bhandari maintained that the main reason for the country's seismic risk is geographical location and structure, but also the weak man-made physical infrastructure is equally responsible.

“Therefore, while learning lessons from past experiences, it is very important to build earthquake-resistant physical infrastructure to minimize the damage caused by natural disasters such as earthquakes,” she said.

In her message for the Seventh Earthquake Memorial Day, the president expressed heartfelt condolences to those who lost their lives in the catastrophic earthquake that struck Barpak in Gorkha district on April 25 seven years ago and the aftershocks that followed.

Nepal has almost completed the reconstruction work of the archaeological and historical heritage, government and public buildings, educational and health institutions, private housing, roads and bridges and other physical structures destroyed by the quake. National Reconstruction Authority was established for the post-quake reconstruction which was active for six years and dissolved after completing the major rebuilding of the damaged structures.

The responsibility of completing the remaining works has also been handed over from the NRA to the concerned agencies.

“On this occasion, I would like to express my heartfelt thanks to all the allies, national and international organizations and volunteers who have been assisting in the post-earthquake reconstruction and rehabilitation work, including the NRA,” President Bhandari said.

Published in The Rising Nepal daily on 25 April 2022. 

Budget should address health issues caused by poverty: FM

Kathmandu, Apr. 24

Minister for Finance Janardan Sharma Prabhakar said on Sunday that the budget should be prepared to end people’s compulsion to live with various diseases due to poverty.

In a meeting with a team of the Ministry of Health and Population at the Ministry of Finance, he urged the Ministry of Health and Population to propose a budget and programme to alleviate poverty and prevent disease.

He said that a hospital with expert services and a well-equipped laboratory should be constructed in each municipality. He had requested to propose budget and programme to extend the services of Patan Institute of Health Sciences and Tribhuvan University Teaching Hospital, Maharajgunj to other places as well.

"The budget should address the issues like expansion of health insurance to the most vulnerable families, improvement of maternity services, creation of a situation where people need not have to go abroad for treatment of complex non-communicable diseases including kidney and liver ailments," said FM Sharma.

At the meeting, Health Minister Birodh Khatiwada said that the postings of doctors and required equipment should be provided to the hospitals with 500 to 1500-bed hospitals.

Likewise, Vice-Chairman of the National Planning Commission Dr. Bishwonath Poudel had suggested creating opportunities and infrastructure for medical tourism, implementing the system of going abroad for treatment only if it was impossible in Nepal, and developing the provincial hospitals as the referral centers.

Meanwhile, the MoF also held discussions with the Ministry of Education, Science and Technology Sunday morning to expedite the preparation of the budget for the coming fiscal year 2022/23.

In the meeting, FM Sharma said that a programme should be designed to curb the trend of dropping out of school.

“Many of the students who are enrolled in class 1 drop out when they reach grade 5. The number of students reaching higher grades seems to be declining,” he said while urging to find out the reasons behind it and suggesting to create environment where students don’t drop out under any circumstances.

He was of the view that digital technology should be used to change the teaching and learning process with the passage of time. He had instructed to start a programmeto start teaching digital technology in some schools from the forthcoming budget.

Minister for Education Devendra Poudel said that if education is not improved, there will be chaos everywhere. He said that the development of the country should also be supported by the improvement in education sector. 

Published in The Rising Nepal daily on 25 April 2022. 

Education and innovation draw visitors at CAN Infotech

Kathmandu, Apr. 24

On the fifth day of IME Pay CAN Infotech 2022, observers attracted to IT-related colleges and startups and innovations.

The Infotech exhibition which started on Wednesday last week at Bhrikutimandap in Kathmandu, is concluding on Monday. On the last day of Infotech, special discounts and offers have been arranged at ICT Accessories and various other stalls.

On Sunday, stalls of Sunway College, Softwarica College, Kantipur City College, NCIT College, LBEF and educational institutions were crowded with students.

Softwarica College and Sunway College have filled their stalls with student-made sensor-based devices, 3D printing, electronic charging based on human activity, three-wheeled vehicles, drones and bicycles.

Students and observers were also attracted to Techmint Innovations' AI-based chatbot, Video KYC, and contract management.

According to the Federation of Computer Association Nepal (CAN Federation) – the organiser of the event, former ambassador Bhagirath Basnet, former secretary engineer Hari Ram Koirala, actress Sushma Karki, famous comedians Deepa Shree Niraula, Jitu Nepal 'Mundre' and Sagar Lamsal 'Bale' and rap singer Rajendra Bhatt 'Mr. RJ' and other distinguished people  visited the exhibition.

CAN Federation’s General Secretary Narayan Thapa said that the exhibition would be even more special on Monday. Likewise, according to Khushal Regmi, Vice President, CAN Federation, people are searching for knowledge and skills to make the use of information and communication technology more systematic and effective, especially in the wake of the COVID-19 pandemic.

Published in The Rising Nepal daily on 25 April 2022.