New projects will be introduced in upcoming budget: PM

  Kathmandu, Apr. 11: Prime Minister Pushpa Kamal Dahal 'Prachanda' has said that some new and qualitative projects will be included in the policy, programmes and budget of the next fiscal year.

Addressing the 72nd annual general meeting of Nepal Chamber of Commerce (NCC) in Kathmandu on Monday, Prime Minister Prachanda said that the government was considering to carry out some new and qualitative projects through the upcoming polices, programmes and budget.

He said that preparation was being made to rise above the traditional thinking and forward some policies, programmes and plans that are different from the ones introduced in the past. “They will be new, and more qualitative than those of the past,” he said.

"The government is on the eve of formulation of policy programmes and budget for the fiscal year 2023/24. The government is clear that the prosperity of the country is not possible through the traditional thinking, policies, programmess and budget. This time, the government is doing its homework to advance some new, qualitative policies, programmes and plans, so that it can make a qualitative contribution to the development and prosperity of the country, and the future governments can also take inspiration from this," he said.

He said without increasing domestic production and employment in the country, the achievement of other sectors could not be sustainable, he said, adding that the government and the private sector should focus on increasing production and employment. Stating that the private sector has a big contribution to the country's economy, the Prime Minister said that governments at all levels had coordinated with the private sector in policy and planning.

He said, “Even though the economy is moving towards reform, it is not totally crisis-free. The government is committed to achieving the goals of social justice, good governance and prosperity by reforming the economy. I believe that the government will have the full support of the NCC and the private sector." Due to the high interest rate of the banks and financial institutions, there was some problem, he said and added that initiatives were being taken to solve it.

He said, "I have been discussing with the governor of the Nepal Rastra Bank and the representatives of the private sector about the impact of high interest rates on overall entrepreneurs and borrowers. Positive signs will be seen within a few days."

On the occasion, Finance Minister Dr. Prakash Sharan Mahat expressed his commitment that he would not leave any stone unturned for the improvement of the country’s challenging economy.

“There are challenges in the economy. But, it is not in the critical position as rumored. So, the government and the private sectors should move hand in hand to improve the economy and make the country prosperous as the private sector is the engine of the economy,” he said.

He said that the inflation was high but was under control.

“Even though there are positive signs in the economy, the confidence of investors is weak, which is a serious matter. So, the government is working to boost their confidence by addressing the present problems such as high interest rates,” said Dr. Mahat.

The tight monetary policy taken by the NRB to control inflation has helped make the economy vibrant, he said, adding that the tight monetary policy alone cannot control inflation because of Nepal’s import based economy.

“Economy of the country can be accelerated to achieve sustainable economic growth and fulfill the people’s aspirations of prosperity through the proper coordination between the monetary and fiscal policy,” he said.

Minister for Industry, Commerce and Supplies Ramesh Rijal said that the government was committed to facilitating private sectors by addressing the problems faced by them considering their roles for the country’s economic development.

NCC President Rajendra Malla said that due to a lack of effective coordination of the country's budget and monetary policy, the economy has not taken the expected pace. He said, “Revenue collection has been limited to only 45 per cent so far. It is not a good sign for the country that the revenue cannot cover recurrent expenses. Increasing the revenue target by expanding economic activities is the need of the day.”

He emphasised that the practice of issuing bills should be made effective in order to discourage illegal trade at the border and bring it under the scope of tax revenue.

He said that in order to increase the participation of citizens in tax nets, provision should be made to give PAN cards along with citizenship.

Senior Vice-president of NCC Kamalesh Agrawal stressed the need for accelerating economic activities by boosting the dwindling confidence of businessmen due to various issues, including high interest rate.