Budget for policy level departure essential: Finance Minister Poudel

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Kathmandu, Feb 1:  Deputy Prime Minister and Finance Minister Bishnu Prasad Poudel has said the preparation of budget for next year and the current budget expenditure depends on government’s capacity and needs.     

Finance Minister Poudel said it at an interaction on ‘Present Economic Challenges and Its Remedy’ organized by the Economic Media Association Nepal (EMAN) in Kathmandu on Wednesday. Homework has begun for the preparation of next year budget, keeping in centre that it should be a policy departure, he added.     

Discussion began on estimated size of resources and budget for next year. Suggestions are received from various sides on making policy departure. For it to happen, objective analysis would be stressed, the Minister reminded.     

He further informed that government adopted the policy of slashing current expenses, which however is not adequate for now. We need to be clear on which policy and mechanism are unnecessary and whether they need to scrapped.     

He worried over not meeting revenue collection target and said it must be evaluated seriously.     

On the occasion, Nepal Rastra Bank Governor Maha Prasad Adhikari said once the economy comes in track, the monetary policy would be made soft. He stressed on boosting domestic production for overall balance in economy.     

He made it clear that all problems facing the private sectors could not be addressed. “Monetary policy has its own limitation, but the expectations are beyond limitation,” Governor Adhikari commented.     

He hoped that liquidity problem would fizzle out gradually. Adhikari urged everyone that if any industrialist was victimized by financial institution, he/she could inform the NRB.     

Chief Executive Officer of Investment Board, Sushil Bhatta, suggested that economic work procedure and Fiscal Liability Act should be implemented effectively in order to increase capital expenditure. Atmosphere should be made conducive for foreign investment, he added.     

Moreover, Chairperson of FNCCI, Shekhar Golchha, viewed there were various reasons behind sheer shrinkage of national economy. There is huge production cost in Nepal while revenue collection has dropped for banning import of some goods.   

With the dented economy cycle, cooperatives and microfinance were facing crisis.   

Also speaking on the occasion were industrialists Pawan Golyan, and Kamlesh Agrawal, and banker Manoj Gyawali. (RSS)

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