Budget Priorities

The Federal Parliament has started deliberating the priorities and agenda of the upcoming budget as the country has taken a new political course following the local level elections. The main opposition CPN-UML has ended its nine-month-long obstruction in the House of Representatives (HoR), citing the critical economic situation of the country. But the UML has said it will continue to protest in the parliament in a different form. Whatever the reasons behind the UML’s decision to let House run without any obstacle, it is a positive move aimed at minimising unnecessary confrontation in the House, the highest seat of elected body. The UML had disrupted the ninth and 10th sessions of parliament, paralysing its business of framing vital legislations and discussing the issues of public concerns.

Democratic system functions smoothly when the major political forces reach minimum understanding on the basic constitutional norms and values. The continuous disruption of the House had sent negative message to the people regarding the effectiveness of the parliament. The main opposition has finally realised the futility of House disruption and decided to allow the 11th session of parliament to discuss the content of the budget. In the past, the lawmakers were denied to provide inputs in the fiscal budget, which is necessary for the judicious allocation of tax payers’ money, and introduce and implement the people-centric development plans, policies and programmes. The constitution has made it mandatory to discuss budget in the House before the government unveils its annual budget statement on May 29. 

According to the news report of this daily, Finance Minister Janardan Sharma presented a proposal of Annual Appropriation Bill-2079 (Principle and Priority), excluding tax proposals, at the Federal Parliament, placing emphasis on rapid economic growth and balanced progress supported by infrastructure development. The lawmakers will discuss it just for two days - Wednesday and Thursday - this year owing to the constraint of time.  The government has prioritised 10 sectors, including agriculture, industry, energy, tourism, social security and climate change. It has attached importance to get the private sector involved in infrastructure development, bring foreign direct investment, support micro, cottage and small industries, utilise demographic dividend and stress international relations and partnership to deal with the climate change impacts. 

The budget has focuses on improving road infrastructure. For this, all weather roads will be constructed to link each local level with the national highways. It seeks to build vital connectivity infrastructure through the public-private-partnership model. In view of declining contribution of industrial sector to the GDP, the new budget aims to complete the ongoing construction of industrial zones and villages and pride projects in time. It has set right priorities such narrowing down the wide trade deficit, expand irrigation facility to all arable land, help farmer access to market and promote contract farming. 

As a large segment of population relies on agro-sector for their livelihoods, it is imperative to give incentives to farmers for making it an important component of national economy. Similarly, the budget aims to build large and reservoir-based hydroelectricity projects and supply energy to every household through the development of micro and medium hydroelectricity projects and renewable energy. Tourism revival, integrated social security, allocation efficiency and fiscal discipline are other thrusts of the new budget. There is no doubt about the programmes and policies of the budget but their relevance lies in their effective implementation.