Budget will kick start Nepal's sluggish economy

GMT 09:19 2014 Tuesday ,15 July

Arab Today, arab today Budget will kick start Nepal's sluggish economy

Kathmandu - XINHUA

 Two days after announcing the annual budget for the fiscal year 2014-2015, Nepal's Finance Minister Dr. Ram Saran Mahat on Tuesday claimed that the annual fiscal policy will 'kick start' the sluggish economy of the poor South Asian country.
Though the budget does not introduce any new programs as such, the Exchequer said as budget has laid maximum focus on financial reformation; it will help give momentum to the stagnant national economy.
The Nepal government had on Sunday announced 6.18 billion U.S. dollars worth of annual budget for the fiscal year 2014-15. This is the first time that the government succeeded introducing full- fledged budget on time in the last four years.
"The amount allotted by the budget alone does not suffice for the economic growth," said the minister during a post-budget interaction held in Kathmandu on Tuesday, "it equally requires policy level intervention which the budget has talked about."
According to him, his ministry has already begun preparations for revising more than two dozen laws and policies that would positively impact country's economic and business environment.
He also said the budget has focused on simplifying policies, structures and procedures that have appeared as obstacles for the economic growth claiming that such an effort will bear fruit very soon.
Justifying the budget's aim to achieve 6 percent economic growth in the next fiscal year, Dr. Mahat said the target can be easily achieved.
"The capacity to spend amount allotted in the budget and the initiation of economic reformations as targeted would prepare conducive environment for private sector to put in their investment, which will ensure to achieve the economic growth target," said Mahat, adding this will eventually lay foundation for upgrading Nepal into the developing one by 2022.
Stakeholders in Nepal have however expressed mixed voices as regards to the recent budget.
Economist Deependra Bahadur Kshetri said that it would be difficult to achieve the target of 6 percent economic growth and containing inflation at 8 percent as aimed by the budget.
"The government has not announced any concrete programs to increase industrial production to achieve high economic growth," Kshetri, who is also former vice chairman of National Planning Commission, told Xinhua by phone.
Nepal's private sector has welcomed the budget for its private sector-friendly tone.
"We are pleased with the budget as it has addressed many of the private sector's demands," said Pradeep Jung Pandey, president of Federation of Nepalese Chambers of Commerce and Industry (FNCCI), country's apex business body, "we want its implementation."


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