PM says govt will do its level best

KATHMANDU, NOV 02 -

Prime Minister Baburam Bhattarai on Thursday said the government will do its best to introduce a full budget by striking political consensus . He claimed an accord on the budget is very much possible.

Speaking at a stakeholders’ meeting at Singha Durbar, Bhattarai said he had already directed the finance minister to begin talks on the budget with the opposition parties by inviting one expert from each party.

Private sector representatives stressed the need to introduce a full budget by forging consensus. President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Suraj Vaidya said the budget must not be made a political issue and urged the parties to forge consensus. “A budget is needed even to ensure a predictable environment for investors,” he said. “Without it, nobody will be willing to invest here.” He argued why they should be made to pay taxes when there is no environment for proper expenditure.

Senior vice-president of the Confederation of Nepalese Industries Narendra Basnet also urged keeping the budget away from politics.

Assuring the private sector of the government ’s attempt to bring out a full budget, PM Bhattarai said agreement could be reached on all issues one at a time if not in a package. “So why not start by consensus on the budget?” he said.

However, the opposition parties are opposed to the idea of the current government presenting the full fiscal estimates. They have urged President Ram Baran Yadav not to endorse any budget-related ordinance forwarded by the government without consensus.

The PM said the ruling parties could go ahead with their pet projects with the allocation of 5 percent of the budget, and that all other parties could fit their desired projects into that bracket through consensus.

On fears of the opposition parties that the government will try to lengthen its stay if it is allowed to present a full budget, Bhattarai said consensus on the budget could pave the way for agreements on other issues.

He also said that the country should target achieving a per capita income of US$ 3000 in the next 10 years, “when nobody will be under the poverty line.”

Finance Minister Barsha Man Pun said the government will try to prepare a common economic programme of all the parties before presenting a full budget. “If we prepare a budget as per the common minimum programme, the interests of the ruling parties will not be in it,” he said.

He added that the government had agreed to present a one-third budget in July for the sake of consensus.

Finance secretary Shanta Raj Subedi urged fixing the date for presenting the budget in the constitution or a law, adding that failure to present the budget on time had affected every aspect of the economy in the past. He was of the view that a separate law should be formulated to ensure timely and effective implementation of the budget by making government agencies accountable for its implementation.

Economist Bishwambher Pyakuryal recommended allowing the government to present a “conditional full budget.”

“The government should first present the details of the income and expenditure in the first four months of this fiscal year. It should then be allowed to present a full budget.”

Trade expert Posh Raj Pandey stressed the need to forge consensus on the budget first. “If the executive is given a free hand in presenting and endorsing the budget, there is the risk of excessive taxation and unnecessary expenditure,” he said.

Source: The Kathmandu Post