Government to draft bill for alternative development financing

KATHMANDU: Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel has said the government is preparing to introduce a legal mechanism for alternative development financing.

Minister Paudel stated that a new bill is being drafted to explore new and alternative fiscal resources.

During a discussion with officials from the Ministry of Finance (MoF) on Sunday, Minister Paudel argued that managing people's aspirations for development and the nation's fiscal management is challenging with traditional financing sources based on revenue, foreign aid, and loans. "We are preparing a draft of the alternative development financing management, and we will soon take it through the legislative process," the Finance Minister shared.

Minister Paudel opined that the alternative development financing mechanism would significantly contribute to managing more fiscal resources and making investments.

For economic prosperity, substantial investment is required not only in infrastructure but also in the areas of skilled human resource development and soft power. Paudel also mentioned that political parties, the private sector, and stakeholders should adopt a new approach for development and economic prosperity.

According to the Spokesperson of the MoF, Mahesh Bhattarai, the alternative development financing would support prioritising the infrastructure sector, ensuring domestic and foreign investment in infrastructure, and making proper use of fiscal tools, among other benefits.

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