HoR Session: Finance Minister Addresses Concerns, Defends Budget Measures

Finance Minister Dr. Prakash Sharan Mahat responding to questions raised by opposition MPs in House of Representatives (HoR) session on Monday. Courtesy: RSS 

In a recent address, Finance Minister Dr. Prakah Sharan Mahat acknowledged errors in the revenue growth rate target and pledged to rectify them based on actual revenue figures at the end of the fiscal year. Responding to questions raised in Parliament, he assured that each revenue category would be realistically matched and that the government remained committed to achieving the target of 24.37 percent through policy reforms.

Dr. Mahat also highlighted the reduction in taxes on small capacity vehicles, stating that the adjustment was made to bring the tax rate for 100 KW to 200 KW vehicles in line with those for 100 KW vehicles. He explained that the policy aimed to encourage the import of vehicles up to 100 kW, resulting in a higher percentage of such imports during the current fiscal year.

Addressing concerns about Nepal's clay export, the Finance Minister defended the budget's stance, emphasizing that it did not advocate demolishing buildings but rather sought suitable locations for clay extraction. He drew comparisons to other countries, such as Bhutan exporting stone and Australia producing coal, to argue that Nepal was not alone in dealing with environmental challenges.

In response to criticisms regarding the constituency development program, Dr. Mahat clarified that the allocated budget would not go into the pockets of Members of Parliament (MPs). He explained that the 5 crore budget per constituency would be used for up to five recommended schemes, with the relevant ministry responsible for awarding contracts. The Finance Minister emphasized the importance of recommendations from MPs, as they represent the expectations and concerns of the people.

Regarding tax rates, Dr. Mahat emphasized that they were aimed at increasing revenue and ensuring economic sustainability, rather than favoring specific households. He noted efforts to correct the shrinking scope of Value Added Tax (VAT) exemptions and defended the imposition of taxes on consumer goods as a means to protect domestic producers and encourage local production.

Acknowledging the challenging circumstances surrounding the budget, Dr. Mahat stated that it could not address all problems at once. He highlighted the budget's focus on increasing production, employment, and curbing youth migration through initiatives in the IT sector, startups, barren land utilization, cooperatives, agriculture, tourism, and small industries.

In conclusion, the Finance Minister expressed his belief that the budget contained important measures, as evidenced by the lengthy commentary from the leader of the opposition party. He reiterated that the budget aimed to tackle various issues and promote economic growth, job creation, and innovation, with slogans reflecting the program's objectives.