Govt will implement all programs announced in budget: Mahat
KATHMANDU, July 14:
Minister for Finance Dr Ram Sharan Mahat has said the government introduced policy and procedural reforms for eliminating constraints to economic growth.
Speaking at a post-budget discussion organized jointly by the Ministry of Finance (MoF) and Society of Economic Journalists-Nepal (SEJON) in Kathmandu on Monday, Mahat expressed commitment to implement all the programs announced in the budget for fiscal year 2014/15.
“The budget is purely focused on achieving high growth by boosting productivity and creating job opportunities within the country,” Mahat said, adding that the government committed to tame inflation by controlling syndicate system and market cartels.
The government has announced that it would blacklist firms promoting syndicate system.
Finance minister Ram Sharan Mahat (2nd from right) talks to the media during a post-budget discussion at Lazimpat, Kathmandu, on Monday. (Dipesh Shrestha/Republica)
Mahat also argued that investment in infrastructure development would help the government to tame inflation.
The government has also said it would reform 35 laws for attracting more investment from the private sector. “It will be continuity of economic reforms initiated in 1990,” Mahat said.
The government has announced to reform over a dozen laws like Public procurement Act (2006) and Public Procurement Regulation (2007) to expedite implementation of development projects, and Environmental Protection Act (1997) for easing existing provisions on environmental impact evaluation (EIA) study of development projects.
Likewise, it has announced to make amendment to Nepal Rastra Bank Act (2001), Bank and Financial Institutions Act (BAFIA-2006), Banking Offence and Punishment Act (2007), Foreign Exchange Regulation Act (1962), and Insurance Act (1992) to ensure stability of the financial sector. Similarly, the government is formulating a separate law to regulate the co-operative sector.
The government has also announced to table the Special Economic Zone (SEZ) bill, Industrial Enterprises bill, Foreign Investment and Technology Transfer bill and Electricity bill in the parliament soon.
Mahat said reforms on the legal front will be supportive to attract new investments. “We need to revive domestic industries that have competitive edge,” Mahat said, adding that the budget has announced special incentive for the textile industries to reduce import of textiles.
The government has also decided to subsidize four percent interest rate to provide agricultural loans at 6 percent. The move is aimed at reducing import of agricultural and meat products.
Mahat also said that the country can achieve double-digit economic growth through development of mega hydropower projects. “We have allocated substantial amount for installing cross-boarder transmission lines with India and other transmission lines inside the country,” added Mahat.
Mahat also accepted that the budget is distributive to some extent. “But it does not deviate from the goal of executing mega infrastructure projects to achieve high economic growth for transforming socio-economic status of the country,” he added.
The government has set a target of graduating to the league of developing countries by 2022.
Speaking at the program, Nepal Rastra Bank (NRB) Governor Yub Raj Khatiwada said the central bank will formulate Monetary Policy 2014/15 to meet loan demands of the public and private sector for achieving the growth target.
Likewise, private sector representatives said they were hopeful that the government will live up to its commitment of implementing policies and programs announced in the budget.
Source: Republica
