Govt to present budget sans ‘populist’ new programmes

KATHMANDU, JUL 09 -
The Finance Ministry has decided to come up with a budget sans ‘populist’ and new programmes. There will not be major  changes in tax structure either.

The Finance Ministry reached this conclusion after a meeting on Monday with President Ram Baran Yadav where he advised Finance Minister Shankar Prasad Koirala not to touch issues that could have a long-term impact.

Following the ministry’s move to introduce the new programmes in the budget, a section of political parties had met the President and expressed their concern that such a budget would serve the interest of certain political parties before the election. Besides, it has also left uncertainty over the presentation of a full budget.

However, the confusion over the budget was cleared after two rounds of meeting at the President’s Office on Monday. A knowledgeable source said that there was no talk regarding the type of budget. “The ministry has understood it as the green signal to go for a full budget,” said a ministry source.

Earlier in the day, Finance Secretary Shanta Raj Subedi and Chiranjivi Nepal, advisor to the Finance Ministry, briefed the President’s advisors about the budget. Later in the evening, Finance Minsiter Koirala gave a detailed power point presentation to President Yadav on the budget, which has been prepared giving priority to energy, agriculture, infrastructure and private sector.

According to sources at both the President’s Office and Finance Ministry, the President advised the Finance Minister to introduce ‘controversy free’ budget without any political programmes, reminding him not to forget the responsibility of the election government. “The President reminded minister Koirala and his team that the new budget should not be a liability to the new government that will come after the Constituent Assembly (CA) election,” said Rajendra Dahal, President’s press adviser.

While briefing the President, Koirala said that he was fully aware of the political situation of the country and that the new budget would not make any major policy departure but focus on public’s concerns. “Even the new programmes will be extended version of the old ones,” said the ministry source.

Having received the green signal from the President, the Finance Ministry said the budget would not make major changes in tax structures. Even without changing tax structure, the ministry believes the revenue collection will increase by 15-20 percent in next fiscal year and revenue growth is expected to be kept at 21 percent. The budget will allocate around Rs 18 billion for the election purpose.

The government plans to keep the economic growth rate at 5-6 percent after the Nepal Rastra Bank projected the growth rate at 5.5 percent, according to a ministry source.  It plans to keep inflation at 7.5 percent.

Labels: Highlight, News