Choose projects only after resource guarantee: FM Dr. Mahat

By A Staff Reporter,Kathmandu, Apr. 23:  Finance Minister Dr. Prakash Sharan Mahat has asked to select the projects only after ensuring resources.

Addressing a discussion programme of the Inter-government Fiscal Council on Friday, Minister Dr. Mahat said that projects without identification of the source would only lead to people being deceived.

The meeting of the council made five main conclusions, including that three levels of government should run projects without duplication according to the constitutional schedule and further strengthen the tax collection system, and clarify the duplication of taxes.

The meeting has decided to emphasise the creation of laws on the basis of financial federalism, to adopt optimum management and utilisation of resources received, avoid creating burden without prior determining sources and set priorities while formulating plans.     

The meeting has also decided that caution would be adopted and priority would be determined while formulating the plan, keeping in mind the identification of the source and the implementation would be possible.

The Council, which is chaired by the Minister of Finance, includes the Minister of Finance of the provincial government, the Minister for Economic Affairs and Planning, the Chairman of the Natural Resources and Fiscal Commission, the Vice Chairman of the National Planning Commission and the Chief Ministers.

Minister Dr. Mahat said, “All three levels of government have important responsibilities. The current challenge is to fulfill their responsibility effectively. There is a problem at the federal, provincial and local levels; the provincial government has entered the second term after completing one term. The local level has come into existence after a long time, learning from our experience, it is necessary to increase its efficiency and effectiveness.”

There are problems because laws and acts have not been formulated, he said, adding that there are also problems and weaknesses in implementation.

“There are some problems created by our experience. Keeping all these things in mind, we should reduce the problem and increase our efficiency and effectiveness. This should be our main goal,” said FM Mahat.

He said that the federal government would take the questions raised by local and provincial leaders and experts in the Inter-government Fiscal Council seriously and find solutions to them.

He said, “It is possible to find a solution to the problem only with the support of everyone. Everyone knows that our revenue collection is weak now. We have gone through problems like the earthquake and COVDID-19 pandemic, this has put pressure on our resources, monetary policies have been introduced to balance these problems, due to which the interest rate has increased and the industry is not operating in full capacity,” said.

“There has been an imbalance in supply and demand, we restricted import of some goods, but the basis of our revenue is customs and after the ban on the import of goods, revenue collection has been affected. The plans cannot be implemented without resources. So, I would like to request that these things be taken into consideration,” he said.

One of the key problems now is the immoderately low development budget at all three tiers. “Capital spending is quite low in all three tiers of government. It needs prioritization of spending for its increment,” he noted.     

He said that it was a must to control the traditional style of scattering budget everywhere. 

“I will put my all-out efforts to check this trend. We will lay emphasis on the prioritised projects assured with sources,” said Finance Minister Dr. Mahat.