Faulty budget allocation behind challenges in implementation: Minister Paudel

Kathmandu, Aug 2: Deputy Prime Minister and Minister for Finance Bishnu Prasad Poudel asserted that implementation of budget remains challenging owing to faulty allocation.     

In today's meeting of the parliamentary committee on finance, Finance Minister Paudel pointed out that the budget was allocated without identifying sources and it was short sighted as well- results were ignored.     

Paudel informed that the government would prioritize completion of the projects that were already initiated while implementing the budget for the current fiscal year 2024/25 and providing adequate resources for the mega and national pride projects.     

The government would also accord priority to those projects that ensure quick results. "The incumbent government does not spend indiscriminately," he said, assuring of maintaining fiscal discipline in the public expenses.     

The Minister, on a different note, mentioned that the government would gauge the necessity and relevance while seeking support from the development partners and donor agencies. "We should only say yes to international support and mobilize the international assistance after analyzing our needs and prioritizes," he maintained.     

According to him, the situation where our public debt has surpassed 40 per cent of the country's GDP cannot be deemed as disorder. He viewed that the public debt should be mobilized in productive sector and capital formation.     

Furthermore, the Finance Minister pledged to maintain consistency between the government's fiscal policy and monetary policy to revitalize the country's economy and achieve sustainable growth.     

The Minister said that his Ministry would not interfere with the functions of the Nepal Rastra Bank, which issued monetary policy, since it is an autonomous agency. The two government agencies should work in coordination instead, he remarked.     

He claimed that positives changes were observed in the capital market following the introduction of new monetary policy and thus urged the investors to consider investment by making well-informed choices. He suggested that while investing in the capital market, one should look into the financial situation of the respective company.     

Assuring his Ministry's role for the stock market to move forward in a matured manner, the Minister stated that the regulatory body should be highly alert to prevent untoward activities such as 'insider trading' in the capital market.     

Regarding the establishment of new stock exchange, he said that the government would make appropriate decisions after conducting necessary studies into the matter.     

Also speaking in the meeting, former Minister for Finance Dr Prakash Sharan Mahat asserted that the government could not afford to spend indiscriminately for appeasing people. "We must not be populist. Discipline is essential in public expenditure management," he suggested.     

According to him, there was no alternative to increase capital expenditure for improving the national economy.     

As for monetary policy, he observed inconsistency in the policy. "Sometimes the Nepal Rastra Bank introduces expansionary provisions in the monetary policy while sometimes too strict."     

The parliamentarians attending the committee's meeting opined that the bills sent to the committee should be forwarded to parliament at the earliest after holding deliberation on them. They also called for effective implementation of programmes included in the budget.(RSS)