Mid-term review of budget: Economic indicators seem positive

KATHMANDU: Finance Minister Prakash Sharan Mahat has stated that the country's economic indicators have shown remarkable growth in the mid-term review of the current fiscal year's budget, and the economy has been gradually improving. 

Upon releasing the review report of the current fiscal year's budget on Monday, the Finance Minister contended that the reform measures initiated by the government have yielded positive results. 

Finance Minister Mahat expressed that the economy has gradually returned to a normal state from the beginning of the current fiscal year, despite the entire economic activities being slow due to the stringent monetary policy implemented to address the pressure of decreasing foreign exchange reserves caused by a high inflow of loans and lax fiscal and monetary policies during the period of Covid 19 pademic.

"Positive outcomes have begun to emerge from the efforts initiated through the budget speech at the policy, system, and procedural levels," said the Finance Minister. 

Furthermore, Minister Mahat committed to progressing in a more coordinated manner in the future by institutionalising and strengthening the efforts made so far for economic reforms. 

The revenue collection in the current fiscal year is 6.54% higher compared to the last review period of the previous fiscal year, although it has not met the target for the current fiscal year. 

Minister Mahat also maintained that some significant initiatives have been advanced to ensure effectiveness in public spending and capital expenditure. 

He asserted that the mobilisation of loans from international development assistance is being conducted solely based on needs and relevance. 

However, there has been pressure on public spending due to a sharp increase in the reimbursement of public debt and mandatory liability. 

On the occasion, he declared that new development projects will be initiated by ensuring a budget for their timely completion.