New Budget Will Increase Capital Expenditure; Encourage Private Sector: PM Prachanda
Prime Minister Pushpa Kamal Dahal 'Prachanda' has said that the upcoming fiscal year's budget; policy and programs would be focused on structural reforms.
At a program on 'Current Challenges of Economy and Future Steps of Solution' organized by Nepal National Employees' Organization of Nepal Rastra Bank (NRB) today, the PM said that projects and programs that give good returns would be allocated budget with top priority.
"The new budget would cut the unnecessary budget, increase capital expenditure by enhancing government's spending capacity and encourage the private sector in generating production and creating employment, the PM shared the government's key priorities. The economy will be robust by increased economic activities from such efforts," the PM added.
PM Prachanda shared that massive transformation and structural changes are required in every sector adding that the entire focus should be centered on achieving sustainable economic development and prosperity by troubleshooting the challenges of different sectors of the economy.
Likewise, the PM called for coordinative efforts by the state organs, private sector, and stakeholders for Nepal's graduation from the LDC and to meet the Sustainable Development Goals (SDGs).
The PM said that there is a significant improvement in the balance of payment, and the foreign exchange reserves have also increased due to the government's move to protect the country's economy.
The PM also mentioned that there have been improvements in other economic indicators including the liquidity supply and reduced interest rate.
The Prime Minister said that the socio-economic area of the people has not changed remarkably though significant achievements were gained in the political sector. "We changed the system. Now, we should focus our attention to change the socio-economic situation. We have to carry out activities making a stride in all sectors," he shared.
Stating that the government under his leadership initiated some important measures to address the challenges of the economy, PM Dahal viewed that policies and programs have been implemented for good governance, prosperity, and social justice.
Stating that good governance could not be promoted until irregularities and corruption were curbed, the PM assured that the incumbent government was seriously working towards combating the corruption.
He expressed, "This has become clear from some recent actions. I would like to extend my gratitude to everyone for your solidarity and support in various ways towards the steps taken by the government towards combating corruption."
Similarly, National Planning Commission Vice-Chairperson Dr Min Bahadur Shrestha asserted the solutions to the challenges prevailing in the national economy at present should be sought through monetary policy and fiscal policy.
Shrestha said, "The budget for the next fiscal year is being prepared. The fiscal policy will deliver what it ought to. The monetary policy introduced thereafter should address the economic challenges prevailing at present."
Likewise, Nepal Rastra Bank's Governor Maha Prasad Adhikari spoke of the need to gain economic inter-independence from external dependence. He underscored structural reforms to bring about positive changes in the situation of reliance on external production and imports for revenue collection.
The Governor argued that we lagged behind economically since we got engaged in political movements for an extended period of time. He highlighted the need to prioritize a lot of things in agriculture and move ahead strategically.
"Our national economy is currently dependent on remittance. As a result, this year may be favorable in the external sector and the financial sector may look successful but challenges certainly loom large for coming days."
