Summary of Inter-Ministerial Discussion: Finance Ministry Wants to Make Better Use of Forest Resources, Raise Minimum Wage, and More

Finance Minister Janardan Sharma has termed rumors that the economy is in crisis as a "planned rumor".

Addressing an inter-ministerial discussion and interaction program on capital expenditure held at the Ministry of Finance on Monday, he said that an attempt was being made to create the illusion that the economic indicators signal a crisis in the economy. "The condition of capital expenditure is weak, that is given, but suggesting that other indicators are also struggling is a planned rumor," Sharma said.

"We acknowledge that capital expenditure must be increased to also alleviate the liquidity shortage."

The program was facilitated by Finance Secretary Madhu Kumar Marasini and was attended by the Secretaries of the Ministries of Home, Industry, Commerce and Supplies, Agriculture, Forest and Environment, Culture, Tourism and Civil Aviation, Youth and Sports, and Joint Secretaries of the Ministry of Labor, Employment and Social Security.

Minister Sharma pointed out the need to amend existing laws and regulations related to forests and the environment to speed up capital expenditure. Stating that the works to be carried out by the Ministry of Forest and Environment for the construction of infrastructure in the forest area could not be expedited due to the existing laws and regulations, Minister Sharma stressed the need to improve it. Minister for Forest and Environment Ramsahaya Prasad Yadav informed that the regulations are being changed to solve the problems related to forests in order to increase capital expenditure. While discussing the problems related to forests, Finance Minister Sharma stressed the need to formulate policies and regulations that would allow the people to use the timber on private land. "Action has been taken even when the timber on private land is cut and used. This isn't right. Let's change the rules," Sharma said. 

He said, "Let's put an end to the situation where valuable timber is wasted in the forests of Nepal." Let's make rules and regulations to make good use of Nepal's wood.

Sharma also urged various ministries to increase the capital expenditure of their respective ministries to 30 percent by Poush. He expressed the commitment of the Ministry of Finance to increase the capital expenditure in a timely manner.

Minister Sharma also informed that preparations are being made to transfer the budget of the ministry which cannot spend 30 percent of the capital within the month of Poush to the place where it is being spent. "The budget will be added to those who can expend it, the budget of the ministry which cannot be spent will be cut,” he said.

Similarly, he said that the daily wage of Rs. 517 was very low as it was given in the Prime Minister's Employment Program. He urged the Ministry of Labor to formulate procedures to change the minimum wage to around one thousand.

On the occasion, Home Minister Balkrishna Khand suggested that it would be appropriate to allow hotels and restaurants to operate 24 hours a day, provided they pay their tax obligations. He said that this would help in business and revenue growth. According to Minister Khand, the Home Ministry is ready to make necessary security arrangements for that.

Meanwhile, Minister for Agriculture Mahindra Raya Yadav said that the government should not only fix the support price of paddy but also make arrangements to purchase paddy from farmers. Stating that it is not possible to provide chemical fertilizer in time through the contract process, he suggested purchasing it immediately through the GTG process.

Minister of General Administration Rajendra Shrestha informed that 40 percent of the total posts were vacant and another 50 percent of the technical staff had to be recruited. He stated that the lack of staff has also affected capital expenditure.

Minister for Youth and Sports Maheshwar Jung Gahatraj pointed out the need to make the interest rate of the loan provided from the Youth Self-Employment Fund lower than the current one and urged the Ministry of Finance to facilitate it.