Check Out The 15 Budget Guidelines Recommended To Ministry Of Finance That Affect Banks And Capital Markets

In the meeting of the Finance committee held on 10 Jestha, 2079, the committee should include in the budget of the coming Fiscal Year -2079/80 on the basis of discussions held on various dates with the bodies under its jurisdiction, various thematic ministries, private sector, experts and others. It was directed to direct the Ministry of Finance to execute the following ideas after considering the priority issues and issues to be addressed by the budget.

NOTE- Only those suggestions that directly affect banks and capital markets have been reflected in this article. A PDF file with budget ideas from other industries has been maintained at the end for your convenience.

HIGHLIGHTS

1. To implement scientific data management as data management is weak in financial management.

2. Banks and financial institutions have made it mandatory to invest in productive sectors with effective monitoring.

3. In view of the fact that A, B, and C class banks and financial institutions have been providing almost the same kind of work services, the work and the scope of work of these 3 class banks and financial institutions should be specialized.

4. In the absence of a credit rating of the country, it is difficult to raise a loan in convertible foreign currency, and in the current situation, due to which, the interest rates are so high, to complete the credit ratings as soon as possible.

5. To improve the legal, procedural, regulatory, and regulatory weaknesses in the sector to make the capital market stable, developed, and predictable.

6. As remittances have not increased relatively in proportion to the increase in the number of people going for foreign employment, remittances will be sent through banks to provide incentives and labor.

7. To make it mandatory to provide the proof of remittance sent through remittance bank even at the time of renewal of approval.

8. Institutional depositors of banks and financial institutions should be allowed to keep term deposits for only 5 years in the long run and the interest paid to those institutions should be significantly less than that of individual depositors

9. To formulate necessary policy to bring green funds into the country after Nepal has signed the COP 26 treaty. (COP26 is a major event bringing together leaders from all countries in the world to agree on how to step up global action to solve the climate crisis)

10. In case of lack of liquidity, necessary arrangements will be made for the flow of money to the market, including the provision of capital expenditure, which will not be spent in the government coffers.

11. Taking into account the policy arrangements taken by the neighboring countries to manage the activities of the illegally operated cryptocurrency, further study this issue and take a timely decision.

12. The impact of the two-day public holiday on Saturday and Sunday on the economy should be analyzed and a necessary decision should be made soon.

13. Projects costing more than 1 arba should be included in the projected bank and federal budget should be allocated only for the projects included in the project banks.

14. To make inter government financial transfers result oriented, transparent and predictable.

15. To take effective steps to control price rise in the face of exorbitant inflation due to international, national environment and business weakness.