Next budget to be investment friendly‚ says finance minister

KATHMANDU:

Finance Minister Shankar Prasad Koirala said that the upcoming budget for the next fiscal year would focus on creating investment friendly environment in the country.

Upcoming budget would give importance to the development programmes in order to accelerate the economic activities and achieve seven per cent economic growth, he said while unveiling the model budget.

“The government in its budgetary policy will give first priority to the hydropower sector,” he said, adding that the budget will boost up the confidence of private sector.

Private sector’s confidence has been declining and the budget will revive the private sector, he added.

National Council for Economic and Development Research (NAREC) Nepal today unveiled its model budget of Rs 509 billion for the fiscal year 2013-14.

In the model budget, NAREC has allocated Rs 315 billion under the heading recurrent expenditure, Rs 107 billion under capital expenditure, Rs 97 billion under financial management and Rs 20 billion for the payment of the principal.

The model budget has targeted to achieve economic growth of five to 5.5 per cent and manage the inflation rate from 11 per cent to 12 per cent during the fiscal year, said president of NAREC Nepal Dr Chandramani Adhikari. Of the total budget,

Rs 368 billion will be collected from revenue, Rs 120 billion from external grant and loan and Rs. 21 billion from domestic borrowing.

“The model budget has focused on equal distribution of resources across the country for alleviating poverty,” he said, adding the budget has focused on creating a solid foundation for poverty alleviation. The budget has targeted to create more than 100,000 new jobs in a year, he said. Senior economist Prof Dr Madan Dahal criticised the model budget saying that it has not included foreign employment and remittance sector that has been contributing to the national economy.

Source: THT