Budget presented with the aim of achieving maximum results: DPM Paudel

KATHMANDU: Deputy Prime Minister and Minister for Finance Bishnu Prasad Paudel said that the budget for the upcoming fiscal year has been presented with the aim of achieving maximum results grounded in reality.

In today’s meeting of the House of Representatives, while answering questions raised during discussions on the budget allocation of the Ministry of Finance (MoF) under the Appropriation Bill 2082, he clarified that the allocation had been made realistically in terms of resource and expenditure management.

"The budget has not taken the risk of encountering a mishap in the pursuit of a big leap while retaining the status quo. It has been presented with the aim of achieving maximum results in today’s circumstances, grounded in reality," said the Finance Minister. He urged lawmakers to regard the budget as a realistic, policy-based measure.

Deputy Prime Minister Paudel indicated that the previously stagnant economy is gradually becoming more dynamic, noting improvements in overall economic indicators.

Mentioning that achieving 6% economic growth is possible through the effective implementation of the presented budget, he said, "The goal of economic growth is achievable. The target is within capacity."

Highlighting the significant role of elected representatives in policy-making and development, he asserted that fulfilling the commitments made to the people is a shared responsibility. He further clarified that preparations were underway to amend the Public Procurement Act to address issues arising in development projects.

Emphasising the need to halt the trend of reducing capital expenditure while increasing ordinary expenses, Finance Minister Paudel shared that a proposal for a significant increase in capital expenditure has been put forward for the coming fiscal year.

"A 17% higher allocation has been made for capital expenditure compared to the current fiscal year, and there is a slight increase in current expenditure, which is a mandatory obligation. However, there has been a significant boost in capital expenditure. This practice must be strengthened and continued in the coming days," he said.

Stating that the government has adopted a policy to widen the tax base by promoting economic activities, he clarified that its policy is to increase voluntary tax participation by implementing collective reforms and simplifying tax laws.

Finance Minister Paudel stated that arrangements have been made for subsidies for sugarcane farmers. "To make the subsidies transparent, an integrated national subsidy policy is necessary. The limit of the subsidy will be determined in accordance with that policy, which will be formulated by the National Planning Commission," he added.

The Finance Minister further stated that the government had provided significant flexibility and facilitation for the remaining payments to contractors in the current fiscal year, and that measures would be taken in the coming fiscal year to ensure that past problems do not recur.

Stressing the modernisation of agriculture and the promotion of productive sectors to increase domestic employment, he noted that foreign employment would be made safe, organised, and dignified, with the benefits derived therefrom channelled into increasing production.

Finance Minister Paudel expressed confidence that the luxury tax imposed on gold jewellery would help control the illegal transactions observed in this business. He explained, "Since this is an indirect tax, it will be borne by consumers rather than gold traders. Its implementation will help control the illegal trade in gold and promote transparency."

By RSS