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Govt’s policies and programmes places emphasis on economic reforms

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KATHMANDU: The annual policies and programmes for the fiscal year 2023/24 has been presented at the parliament with a focus on economic reforms of the country. Presenting the government’s annual policies and programmes at the joint meeting of the House of Representatives and National Assembly of the Federal Parliament, President Ramchandra Paudel said the government has a goal to gradually improve the economy. "Reduction in the overall demand of economy coupled with shrinking liquidity, higher interest rate, price inflation, low capital expenditure, weak revenue mobilisation and pressure in the external sector will be gradually addressed," President Paudel said while presenting the annual policies and programmes. The annual policies and programmes lay emphasis on the participation of private sector for the expansion of economy, efficient revenue administration, effective capital spending and reduction in public spending. The government's policies and programmes further emphasised making the national income judicious and developing private sector as the key partner of economic development. "The country will be made economically strong by enhancing production and productivity and expanding employment opportunities through the collaboration of government and private sector. The foreign investment would be mobilised in priority areas," the annual policies and pogrammes stated. The policies and programmes has been introduced with a plan to take some crucial action for reforms in the tax system when the collection of public revenue was fairly low this time around. "The revenue administration will be made further effective and efficient. Existing tax system will be reviewed. The tax net will be expanded. All kinds of economic activities will be integrated into formal system. Revenue leakage, low invoicing, hundi, investment in illegal transactions and national capital flight will be brought under control," the policies and programmes further emphasized. The government policies and programmes has also accorded priority to make the annual budget spending system effective and well-managed. The government has put forth a plan to increase capital spending and reduce public expenditure. "Allocation and implementation efficiency of public spending will be improved. Budget formulation to the implementation process of all three tiers of the government will be reviewed," President Paudel said. "Allocation accountability will be strictly enforced; economic administration would be made transparent, result-oriented and information technology friendly", the annual policy and programme noted. Public procurement process will be made further transparent and well-managed through the Public Procurement Monitoring Office, the policies and programmes stated, adding legal provisions of the Public Procurement Monitoring Act will be amended. The e-procurement will be made mandatory as per the government plan. The government has laid emphasis on making fiscal federalism effective. Fiscal transfers will be made based on the need of the expenditure and revenue capacity and will be linked with performance. The annual policies and programmes has also touched upon the problems faced by banks and financial institutions of late. "Banks and financial institutions, cooperatives and stock market will be made further effective. Depositors of the banks and financial institutions will be protected. Investment of the financial sector will be centralised in productive sector. Loan will be mobilised further in productive sector focusing on disadvantaged groups," President Paudel added. "Effective monitoring and supervision would be placed to manage microfinance. Policy on national cooperative will be amended". The government has come up with a policy to bring institutional reforms for the development and reforms of the stock market. "Investment from non-resident Nepali will be made open in the stock market. Youths going abroad for employment will be encouraged to make investments in public debenture and initial primary offering of the private ventures," the annual policies and programmes stated. By RSS READ ALSO: