PM Dahal hints at structural reforms through policies and programmes, budget

KATHMANDU: Prime Minister Pushpa Kamal Dahal has said the upcoming fiscal year's budget, and policies and programmes will be focused on structural reforms. At a programme on 'Current Challenges of Economy and Future Steps of Solution' organised by Nepal National Employees' Organisation of Nepal Rastra Bank (NRB) on Monday,  PM Dahal said that projects and programmes that give good returns will be allocated budget with top priority. "New budget will cut the unnecessary expenditures, increase capital expenditure by enhancing the government's spending capacity and encourage private sector in generating production and creating employment," the prime minister shared the government's key priorities. "Economy will be robust by increased economic activities from such efforts," he added. PM Dahal shared that massive transformation and structural changes are required in every sector adding that the entire focus should be centred on achieving sustainable economic development and prosperity by troubleshooting the challenges of different sectors of the economy. Likewise, the PM called for coordinative efforts of the state organs, private sector and stakeholders for Nepal's graduation from the LDC and to meet the sustainable development goals (SDGs). "There is a significant improvement in the balance of payment, and the foreign exchange reserves has also increased due to the government's move to protect country's economy," he said. He also mentioned that there have been improvements in other economic indicators including the liquidity supply and reduced interest rate. The Prime Minister said that socio-economic area of the people has not changed remarkably though significant achievements were gained in the political sector. "We changed the system.  Now, we should focus our attention to change the socio-economic situation. We have to carry out activities making a stride in all sectors," he shared. Stating that the government under his leadership initiated some important measures to address the challenges of economy, the head of the government opined that policies and programmes have been implemented for good governance, prosperity and social justice. Good governance cannot be promoted until irregularities and corruption are curbed, the PM asserted, the incumbent government is seriously working towards combating the corruption. He expressed, "This has become clear from some recent actions. I would like to extend my gratitude to everyone for their solidarity and support in various ways towards the steps taken by the government towards combating corruption." Similarly, National Planning Commission Vice Chairperson Min Bahadur Shrestha opined that the solutions to present challenges prevailing in the national economy should be sought through monetary policy and fiscal policy. He said, "The budget for the next fiscal year is being prepared. The fiscal policy will deliver what it ought to. The monetary policy introduced thereafter should address the economic challenges prevailing at present." [caption id="attachment_36517" align="alignnone" width="1000"] Nepal Rastra Bank Governor Maha Prasad Adhikari addresses a programme on 'Current Challenges of Economy and Future Steps of Solution' organised by Nepal National Employees' Organisation of Nepal Rastra Bank (NRB) in Kathmandu, on Monday, May 15, 2023. Photo: Screenshot of RSS Video[/caption] Likewise, NRB Governor Maha Prasad Adhikari stressed the need to gain economic inter-independence from external dependence. He underscored structural reforms to bring about positive changes in the situation of reliance on external production and imports for revenue collection. The NRB Governor argued that we lagged behind economically as we got engaged in political movements for an extended period of time. He highlighted the need to prioritise a lot of things in agriculture and suggested moving ahead strategically. "Our national economy is currently dependent on remittance. As a result, this year may be favourable in the external sector and the financial sector may look successful but challenges certainly loom large for coming days." READ ALSO:

• Government's expenditure exceeds revenue collection by Rs 250 billion
• NCC urges Finance Minister to make budget production-oriented
• Finance Minister discusses budget with int'l development partners
• Facilities given through monetary policy review not enough to boost economy: FNCCI
• Nepal records Rs 903.39bn remittance inflows in 9 months of current FY