Lawmakers approve proposal to review Economic Procedure and Fiscal Responsibility Bill

KATHMANDU: Lawmakers have approved the proposal to consider the Economic Procedure and Fiscal Responsibility (First Amendment) Bill, 2081, during today’s House of Representatives (HoR) meeting.

Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel, who presented the proposal, stated that the Bill aims to enhance the effectiveness of budget implementation and ensure fiscal discipline. The majority of lawmakers supported the proposal.

Minister Paudel stressed the need to restore discipline in budget preparation, citing the current challenges in meeting general expenditure due to revenue shortfalls. He noted that the budget for the fiscal year was prepared with reduced allocations, even for mandatory liabilities, and based on a 31% revenue growth target, which remains difficult to achieve.

Highlighting the selection of approximately 18,000 projects for the fiscal year, Paudel acknowledged the challenges in their implementation. He stressed the importance of prioritising high-return projects and collaborating with bilateral and multilateral development partners to address Nepal’s needs. He also expressed optimism about recent policy and legal reforms fostering a positive investment environment.

Paudel pointed out the necessity of amending provisions in the Public Procurement Act to prevent misuse and align it with national requirements. He assured lawmakers that the government is working on these amendments.

During the discussion, Lawmaker Amresh Kumar Singh urged the government to address issues such as revenue leakage, declining foreign aid, and liquidity concerns in the banking sector. Lawmaker Devendra Paudel highlighted the need to reform the economic system, citing public debt exceeding Rs 2.6 trillion, remittances of only Rs 9 billion in the past seven months, and foreign exchange reserves of Rs 2.4 trillion. He called for capital infusion to stimulate the economy and job creation.

HoR member Rajendra Kumar KC expressed confidence that the Bill would help increase capital expenditures, control revenue leakage, and improve fiscal transparency. Abdul Khan and Janardan Sharma stressed the importance of restructuring the economic system and prioritising sectors like education and health.

Hit Raj Pandey and Manish Jha emphasised the need for the Bill to address economic priorities and livelihood issues. Bimala Subedi and Juli Kumari Mahato called for refinements to the Bill to strengthen fiscal discipline. Madhav Sapkota underscored the urgency of amending the Public Procurement Act to tackle the economic crisis.

Other lawmakers, including Shakti Bahadur Basnet, Gyanu Basnet Subedi, Prem Suwal, Saraj Ahmed Farooqui, and Narayani Sharma, also shared their views on the Bill’s principles.

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