Economy

Economists: Limit budget ceiling at Rs. 270 billion

Published by Octron on June 28, 2009

Economists stressed on Saturday that the budget for the fiscal year 2009/10 should not cross the ceiling of Rs.270 billion to limit the inflation and fiscal deficit. They also emphasised that the budget should be investment-oriented instead of revenue driven. At an interaction on upcoming budget organised by Nepal Economic Association (NEA), its president Dr. Madan Kumar Dahal said the new budget should ensure that a member of the poorest family could get employment for at least for 100 days of the year.

He suggested increase in social security, control in appreciation of Nepali currency against the dollar and reducing corporate tax at least by 5 percent to promote more private investment. “Private sector investment should be be a national priority,” he said. He was of the view that the budget to be allocated in education and health should be on the basis of performance to achieve concrete results in the sector given the poor results in those sectors despite huge investments in the past.

Education takes a lions share of the budget which accounts for about 15 percent. Educationists however say this should be increased to 20 percent. Dahal pointed out rural infrastructure, information technology, irrigation, drinking water, electrification and quality education and health as key sectors that need high attention in budget allocation.

Speaking on the occasion, Dr. Bishwombher Pyakuryal, former president of NEA stressed on the need to address issues of law and order and economic infrastructures including electricity, roads and irrigation. He also emphasised the need for reservoir-type hydropower project to address long load shedding hours.

He said that the country’s economy could grow by 5 percent in the next year if the political situation did not deteriorate further and local bodies were formed.

“If some attempts are made to control inflation, it may go down to 6-7 percent from existing double digit inflation,” he said. Participants at interaction emphasised on transparency, political commitment and an end to cycle of strikes and bandas.

On the occasion, Finance Minister Surendra Pandey said the government would arrange adequate budget for major priority projects instead of sprinkling the resources. He did not make any commitment but stressed that there should be more investment friendly-environment for attracting both domestic and foreign investment.

He was of the view that the budget should also be able to address the emerging social issues.

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