Finance Minister Dr Prakash Sharan Mahat has said green signals are noticed for a vibrant economy as a new fiscal year is commencing very soon.
In a meeting of the Finance Committee of the House of Representatives on Tuesday, the Finance Minister said the economy would be grasping an upward trend, creating a pressure on the government to speed up the pace for achieving the goals.
“Collective efforts and commitments are needed for economic expansion,” the Minister said, adding that the government was serious about scaling up revenue collection and capital expenditure, and about discouraging general expenditures.
According to the Minister, the nation’s entire scenario is positive, but still not hassle-free. No country in the world observes a problem-free economy. Emergence of problems is common in the economy and it demands solutions as well.
“Needs and the demand-side are larger than the supplies and dissatisfaction are usual in such situations,” he said.
Revenue Secretary Dr Ram Prasad Ghimire said the increasing responsibilities for pension, social security and remuneration posed challenges in resource management. As he apprised the meeting, the government is required to manage additional resources equivalent to around Rs 25 billion by July 10 for the payment towards its mandatory responsibilities in the current fiscal year.
He added that the present situation of resource collection suggested the need to reduce expenditures.
In the meeting, the Committee members said revenue collection less than the annual target caused challenges in addressing the economic slowdown and promoting investment in the industrial sector.
Highlighting the role of remittance in the national economy, they demanded the government’s views about possible challenges and alternatives in case of fluctuations in the remittance inflow.
They were inquisitive about the lack of allocation of required budget for the management of chemical fertilizer, agricultural sector and strategic roads.
Were there other sources for the management of forex reserves besides remittance, they queried, opening that achievements of budget goals would be difficult because of the budget scattered in small projects.
