Finance Minister Mahat Optimistic as Economic Indicators Improve

In a recent press conference at the Ministry of Finance, Finance Minister Dr. Prakash Sharan Mahat expressed optimism about the country's economic trajectory. Following a review of the monetary policy's first quarter, Minister Mahat noted the dispelling of doubts in the stock market, attributing the positive change to the recent upward trend in stock market indicators.

Minister Mahat highlighted that ongoing discussions and coordination between the Ministry of Finance and the Rastra Bank have resulted in a more accommodative monetary policy. This shift, according to him, has positively impacted banks and financial institutions, leading to a gradual increase in economic activities. Real estate and share transactions are on the rise, and debtors facing difficulties have been granted loan restructuring until the end of Chaitra.

The decrease in interest rates is expected to bring relief to struggling businesses, and Minister Mahat claimed that the Ministry of Finance has successfully managed outstanding obligations to builders. Remittances, reaching record levels, have prompted a focus on increasing capital expenditure to bolster the economy.

Minister Mahat emphasized a strategic approach to loans, mobilizing funds based on necessity and justification rather than unnecessary borrowing. He highlighted the positive impact of a high-level committee formed to reform the tax system, contributing to improved revenue collection and control of revenue leakage.

Providing key economic statistics, Minister Mahat reported a 6% growth rate in capital expenditure and increases in customs duty by 13%, VAT by 7.19%, and income tax by 12%. The overall tax revenue has seen a commendable rise of 7.57%.

Looking ahead, Minister Mahat outlined plans for economic growth by encouraging consumption and investment, streamlining government spending, providing immediate relief to earthquake-affected areas in the western region, and swiftly rebuilding damaged structures to create employment opportunities for the youth.