Budget is balanced, not ambitious, says Finance Minister Pun

KATHMANDU: Finance Minister Barsha Man Pun has indicated that the budget is a stimulus for the national economy, as it is in harmony with the constitution, the 16th periodic plan, review of the republic, and principles and priorities of the appropriation bill.

Minister Pun asserted that constructive feedback from lawmakers, government policies and programmes, and commitments made at international forums were all taken into account while drafting the budget. He further added that the economy is gaining momentum, supported by the morale of the private sector.

In response to inquiries from lawmakers about the budget's capacity to strengthen the national economy, Finance Minister Pun expressed his conviction at a federal parliament meeting on Wednesday that the financial sector would mobilise funds available for investment to invigorate economic activities and projects.

"I assure you that we will attain 6% economic growth rate through the effective execution of the policies and programmes included in the budget. Resources have been assured, capital expenditure has been escalated, and projects have been secured through budget allocation," Pun declared.

The government has disclosed a budget of Rs 1.86 trillion for the fiscal year 2024/25.

According to the Finance Minister, the budget is balanced, not ambitious, in comparison to the past. It is productive, not distributive, he further added.

The Finance Minister also reassured lawmakers that national pride projects would not experience a budget shortfall. Climate change has been given priority in accordance with the principles of climate justice.

Pun revealed that the tax system will be implemented in line with the report from the high-level tax reforms committee. Revenue administration will be improved in terms of capacity and professionalism.

He further added that uniformity was maintained in the excise duty by comparing it with other countries.