'Economy did not improve due to low expenditure'

Nawalpur, July 10: Experts have said that the economy is not improving due to the failure to spend the money in the country.     

Speaking at a function organised to mark the 46th foundation day of Vijay Development Resource Center at Gaindakot in Nawalparasi (Bardghat-Sustapur) on Wednesday, experts expressed their concern over the inadequate spending of the country's budget.     

On the occasion, Kathmandu University Registrar and Economist Prof Dr Achyut Wagle said that the lack of capital expenditure is a challenge for the country's development. "The government allocates about 18 percent of the budget for development, but only 40 percent of it is spent. This is the main reason why the economy is not improving," he said.     

He also said that the number of people going for foreign employment is continuously increasing because the citizens have stopped expecting from the state.     

Namrata Sharma, an expert on institutional development and good governance, said that the problems in the economy are due to distortions in traditional practices of borrowing and financial networking. Due to the lack of financial literacy among the general public, many citizens have been cheated in financial cooperatives.     

In the program, the President of Nepal Federation of Savings and Credit Cooperative Unions Ltd. Chandra Prasad Dhakal said that some cooperatives have become problematic due to lack of good governance.     

During the dialogue, Chief Executive Officer of Rastriya Sahakari Bank, Badrikumar Guragai, mentioned that credit risk has increased in financial cooperatives due to bad loans.     

Keshav Prasad Sapkota, Executive Director of Vijay Bikas Resource Center, facilitated the group discussion on cooperative dialogue.     

 Prem Prasad Sapkota, President of VYCCU Savings and Credit Cooperative Society Limited and Phulmaya Moktan, Chief Manager of Mahila Milan Savings and Credit Cooperative Society Limited, gave a presentation on the good practices of cooperatives.     

At the program, the president of the center, Krishna Prasad Sapkota, informed about the activities being carried out by the organization.(RSS)