Budget 2070/71: What experts say

KATHMANDU, JUL 15 -
Rameshore Khanal

Former Finance Secretary

The budget ’s priority to energy and agriculture is good. It has also allocated sizeable money for existing power projects and transmission lines. However, the budget alone may not be enough to complete them. As the budget has also been allocated for local-body elections in addition to the CA polls, it will affect the implementation of the budget as government employees will be busy in the elections. The capital budget is low and recurrent is high, and the current government mechanism will not help in increasing capital expenditure. As this government’s major job is election, the budget should not have announced measures such as forming various commissions for tax reforms. It is not sure whether an elected government would accept and implement the report of such commissions. Some measures on tax exemptions and government employees’ salary increment should also have been left for the elected government.

Barsha Man Pun

Former Finance Minsiter

The budget is good enough to be owned by the next government. Adequate resources have been allocated for the election purpose, but an additional Rs 3 billion will go to election through the Peace Fund. That additional budget was not necessary as it could be misused. Some “shadow” of the Nepali Congress has been observed on the budget . It would have been better had the government left the issue of tax exemption to the next government which may be controversial. Despite promising not to bring any new programmes, a few have been introduced.

Bishwambher Pyakuryal

Economist

The budget size is reasonable. However, the target for economic growth and inflation are not realistic. Despite allocating a huge amount for social security, there is doubt on how that would be spent effectively. Its focuses on health

insurance, commitment not to allow shortage of health practitioners in needy areas are good, but how it will

do that is questionable. Funds have been allocated for local-body

elections, but it will not be enough. There remains non-spending of budget allocated for local elections, which may hit the economy.

Ram Sharan Mahat

Former Finance Minister

It is a normal budget without new programmes. There is no major policy departure. As the country’s economy is suffering for the last several years, the government should have dared to introduce measures that would boost the economy. Governance-related problems could affect the implementation.

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