Govt plans to spend Rs 1,616b over 3 years

KATHMANDU, JUL 06 -

The government plans to spend Rs 1,616 billion in the new three-year interim plan (2013-2016).

The approach paper of the upcoming plan has expected recurrent expenditure of Rs 980 billion, capital expenditure of Rs 277 billion, and the rest under financing management. Discussion on the paper kicked off at the National Development Council on Friday.

Recurrent expenditure is meant for administrative- and salary-related expenditure, while capital budget is invested particularly in development projects. The budget under the financing management goes to public enterprise sin the form of share and loan investments. “The investment to be made during the plan period is expected to have a positive impact on broad economic indicators,” states the Approach Paper.

The government expects to generate Rs 1,133 billion through revenue, Rs 341 billion from foreign aid and Rs 129 billion from internal loans. “The government is the main mechanism of the nation’s development,” states the approach paper.

“The government should play the role of a leader in partnership with the private sector and non-government organisations.”

However, the paper has also sought increased role of the private sector, cooperatives and non-government organisations in attaining the goals of the upcoming plan.

Speaking at the NDC meeting, National Planning Commission Vice-chairman Rabindra Kumar Shakya said capital investment from the private sector is expected higher than that from the government.

He said government would promote the private sector by creating investment-friendly environment, flexible labour policy, industrial security and increasing participation of the private sector in infrastructure projects.

The approach paper also plans to develop industrial sector modelled under cooperatives set-up. The government aims to attain an economic growth of 6 percent during the plan period and maintain inflation at 7 percent. Employment is expected to increase by 3.2 percent annually and poverty to reduce to 18 percent.

The growth target for the agriculture sector has been set at 4.5 percent. To achieve this target, the Approach Paper has focused on commercialisation of agriculture, irrigation, agriculture road, agriculture credit, extension of research and technology, rural electrification and markets for agriculture products.

The non-agriculture sector is expected to grow by 6.7 percent, while industrial sector is expected to grow by 4.7 percent. The Approach Paper has prioritised policy and procedural ease for industrial environment, expansion of industrial infrastructure and promotion of small and medium sized industries. Power, tourism and real estate sectors are also expected to grow modestly during the new plan period.

Source: The Kathmandu Post