KATHMANDU: Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel said indicators of the country's economy are at risk due to negative impacts on the global economy and challenges stemming from the country's internal causes.
He however said he was continuously effortful to resolve economic problems in the country. He made this statement while delivering a speech on the matter relating to the half-yearly report of budget for the fiscal year 2022/23 at the meeting of the House of Representatives on Monday.
"I am effortful in shoring up business confidence of the private sector, making relations between the government and the private sector credible and helpful, ending anomalies and divergences in revenue mobilisation, and resolving existing problems in the implementation of budget and in the financial sector," he said and added, "It will take time for the efforts to be fruitful due to structural limitations and some foreign impacts.
The government has come up with the policy of maintaining budget balance, stressing the need to increase capital expenditures, reduce expenditures except in emergencies, make the revenue administration prompt and increase the tax obedience and control its leakage, he informed.
Economic growth target of 8 PC unattainable An assessment of the existing trend of the economy shows that the target of 8% economic growth rate cannot be achieved," Finance Minister Paudel Said. He stated that although it is positive to estimate the production of paddy which is likely to increase this year and the gradual improvement in the tourism sector, we have not been able to run the production-oriented industries at full capacity, causing a slowdown in the economic growth rate. Similarly, the deemed inflation ceiling set for the current fiscal year has been overshot. "The target was to contain the inflation to 7% in the current fiscal year. However, the year-on-year inflation based on the CPI has reached 7.26 per cent," he added.
Govt not to propose new project causing extra financial burden Admitting that the country’s economy was under pressure, the government has opted for a middle path to curb expenses by not proposing any new programmes and projects that create an additional economic burden in the current fiscal year. Minister Paudel mentioned that no new project will be unveiled for the cause of public expenditure management. He also said the programmes that are still awaiting approval for their standards, procedures, guidelines and operational models will be completely or partially postponed for now and will be gradually released based on the availability of resources. Likewise, the concerned ministries should take approval from the Finance Ministry if the programmes are not taken to the implementation phase despite prior approval taken from the ministry for assurance of the resources. However, Minister Paudel asserted the ministries could adjust the resources internally by fixing the priorities of budget and programmes. The unspent budget should be reverted to the Finance Ministry as per the Fiscal Procedures and Financial Responsibility Act, 2076 BS. Minister Paudel said that coordination and information exchange will be made effective among the bodies involved in the revenue leakage control, and warned those involved in the revenue leakage will be brought to book. READ ALSO:
Economic growth target of 8 PC unattainable An assessment of the existing trend of the economy shows that the target of 8% economic growth rate cannot be achieved," Finance Minister Paudel Said. He stated that although it is positive to estimate the production of paddy which is likely to increase this year and the gradual improvement in the tourism sector, we have not been able to run the production-oriented industries at full capacity, causing a slowdown in the economic growth rate. Similarly, the deemed inflation ceiling set for the current fiscal year has been overshot. "The target was to contain the inflation to 7% in the current fiscal year. However, the year-on-year inflation based on the CPI has reached 7.26 per cent," he added.
Govt not to propose new project causing extra financial burden Admitting that the country’s economy was under pressure, the government has opted for a middle path to curb expenses by not proposing any new programmes and projects that create an additional economic burden in the current fiscal year. Minister Paudel mentioned that no new project will be unveiled for the cause of public expenditure management. He also said the programmes that are still awaiting approval for their standards, procedures, guidelines and operational models will be completely or partially postponed for now and will be gradually released based on the availability of resources. Likewise, the concerned ministries should take approval from the Finance Ministry if the programmes are not taken to the implementation phase despite prior approval taken from the ministry for assurance of the resources. However, Minister Paudel asserted the ministries could adjust the resources internally by fixing the priorities of budget and programmes. The unspent budget should be reverted to the Finance Ministry as per the Fiscal Procedures and Financial Responsibility Act, 2076 BS. Minister Paudel said that coordination and information exchange will be made effective among the bodies involved in the revenue leakage control, and warned those involved in the revenue leakage will be brought to book. READ ALSO:
Published Date: February 13, 2023, 12:00 am
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