IANS
Two days after announcing the annual budget for the fiscal year 2014-2015, Nepal’s Finance Minister Ram Saran Mahat yesterday claimed that the annual fiscal policy will ‘kick-start’ the sluggish economy of the South Asian country.
Though the budget does not introduce any new programmes as such, the minister said as budget has laid maximum focus on financial reforms, it will help give momentum to the stagnant national economy, Xinhua reported.
The Nepal government had on Sunday announced $6.18bn worth of annual budget for the fiscal year 2014-15. This is the first time that the government succeeded introducing full- fledged budget on time in the last four years.
“The amount allotted by the budget alone does not suffice for the economic growth,” said the minister during a post-budget interaction held in Kathmandu yesterday, “it equally requires policy level intervention which the budget has talked about.”
According to him, the ministry has already begun preparations for revising more than two dozen laws and policies that would positively impact country’s economic and
business environment.
He also said the budget has focused on simplifying policies, structures and procedures that have appeared as obstacles for the economic growth claiming that such an effort will bear fruit very soon.
Justifying the budget’s aim to achieve 6% economic growth in the next fiscal year, Mahat said the target can be easily achieved.
“The capacity to spend amount allotted in the budget and the initiation of economic reforms as targeted would prepare conducive environment for private sector to put in their investment, which will ensure to achieve the economic growth target,” he said, adding this will eventually lay foundation for upgrading Nepal into the
developing one by 2022.
Stakeholders in Nepal have however expressed mixed voices as regards to the recent budget.
Economist Deependra Bahadur Kshetri said that it would be difficult to achieve the target of 6 percent economic growth and containing inflation at 8% as aimed by the budget.
“The government has not announced any concrete programs to increase industrial production to achieve high economic growth,” Kshetri, who is also former vice chairman of National Planning
Commission, said.
Nepal’s private sector has welcomed the budget for its private sector-friendly tone.
“We are pleased with the budget as it has addressed many of the private sector’s demands,” said Pradeep Jung Pandey, president of Federation of Nepalese Chambers of Commerce and Industry (FNCCI), country’s apex business body, adding: “We want its implementation.”