I had the wonderful opportunity to present a paper on “Nepal’s Budget for FY 2013-14: The Challenge to Formulating Pro-poor and Investment-friendly Budget” at a symposium organized jointly by Nepal Economic Association (NEA) and Ministry of Finance (MOF)/Government of Nepal (GON) on Thursday June 20, 2013 in Kathmandu. The major proposals I have recommended for the next FY are to: (1) reduce transportation costs and control inflation; (2) increase investment in agriculture with establishment of fertilizer factory under PPP framework; (3) create employment opportunities by establishing export-promoting and import-substituting industries; (3) reduce load-shedding hours; (4) narrow down trade deficits; (5) review functioning of Cooperatives, and expedite merger of financial institutions; (6) develop quality of human resources; (7) improve industrial relations; (8) maintain fiscal discipline and check rampant corruption; (9) increase productivity of foreign aid; and (10) focus on reordering of priorities comprising economic services (P1), social services (P2), general public services (P3), and public order and safety (P4). I have further suggested that mission and vision of Nepal’s budget for FY 2013-14 should be “pro-poor and investment-friendly” primarily focusing on holding elections for CA. This would be a full-fledged budget and the prime objectives of the budget should be to provide relief to poor people, attract FDI and promote indigenous investment, increase credibility of Nepal among development partners ensuring robust growth. There is need to set the target of 5 to 6 percent growth rate to give a big push to economy with substantial reduction in poverty. Inflation must be kept at 7 percent backed by flexible and appropriate monetary policy. The size of budget should limit at 30 percent of GDP, which is estimated to be Rs. 510 billion for FY 2013-14. During the deliberations the Chief Guest and a soft spoken young Minister for Finance, Industry and Commerce Hon’ble Mr. Shankar Prasad Koirala stressed on the need for making a breakthrough in the economic front by neutralizing economic vulnerabilities facing the economy in cooperation with private sector. While commenting on the paper Prof. Dr. Govind Nepal emphasized on the need for establishing import-substituting industries and referred to the importance of tourism sector. Dr. Chiranjibi Nepal, Secretary-General of NEA and Chief Economic Advisor at Ministry of Finance delivered the welcome address. While speaking from the Chair Dr. Bhawani P. Dhungana, Act. President of NEA urged for improving the institutional capacity and governance to stimulate economic growth. During the occasion, Hon’ble Minister Mr. Shankar Koirala was felicitated by life membership of Nepal Economic Association. The members of Nepal Economic Association, economists and bankers, professionals, representatives from private sector and media persons participated at the symposium.
Posted on: Fri, 21 Jun 2013 02:05:28 +0000
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