Budget remains 'objective' amidst resource contraction: Finance Minister Pun

KATHMANDU: Finance Minister Barsha Man Pun has asserted that the budget for fiscal year 2024/25 remains objective, despite experiencing significant pressure in resource management.

Proposing to the House of Representatives (HoR) today to initiate general deliberations on the estimations of the government's revenue and expenditure, Finance Minister Pun said the budget is capable of alleviating civic frustrations and counter economic slowdown. 

"During the budget formulation process, everyone recognised the contraction of resources. There were numerous expectations from the budget. Concerns were whether it would prioritise creating an environment that encourages young people to seek career opportunities within the country and stimulates the private sector. But now, reactions suggest that the budget is objective, even amidst the contracted resources. The private sector has also labelled it as balanced," Minister Pun stated.

The Finance Minister claimed that the budget is grounded on the principles and priorities presented by the immediate past Finance Minister, Prakash Sharan Mahat.

Similarly, tax rate alterations were made based on necessity, following a thorough analysis of their relevance. Tax rates were revised at the lowest level, and these changes were driven by necessity, he asserted. According to Pun, the government did not want to risk political stability by making substantial changes to tax rates.

The Minister informed the Lower House that the nation's economy is gradually improving. Amidst the shrinkage of the national economy, the Central Statistics Office has estimated 3.9% economic growth rate this year.

Last year, Nepal's economic growth rate was 1.9%. The situation suggests that the economy is on the path to recovery, but a full recovery is still awaited, according to Minister Pun.