While a number of lawmakers have expressed their dissatisfaction over the unfair proportion of budget allocated for various important programs, Finance Minister Barsha Man Pun has asserted that the government has tried to mobilize the country’s limited financial resources more objectively.
Expressing their opinion over the budget for the fiscal year 2024/25, the lawmakers on Sunday stated their views on the government’s financial plan for the next FY. The government has taken the budget, which was announced on May 28, for discussion in the House of Representatives from Sunday.
Manish Jha, lawmaker from Rastriya Swatantra Party, said the budget could not allocate adequate funds for the enhancement of the institutional capacity of the state mechanism. He pointed out the possible risks on the private sector’s investment when the government moves to take excessing domestic borrowings.
The government has announced a budget of Rs 1.860 trillion for the upcoming fiscal year 2024/25. The source of financing will be Rs 1.26 trillion from revenue, Rs 330 billion from internal loans, Rs 217 billion from external loans, and Rs 52.3 billion from foreign grants. In Sunday’s meeting, a number of lawmakers slammed the government for targeting excessive internal loans as the source of financing.
“It is not appropriate for the government to target an additional Rs 89 billion to be raised from internal borrowing,” said Former Finance Minister Prakash Sharan Mahat. “The government has just focused on the popularity and completely neglected gaining maximum returns from the investment,” he added.
Ram Prakash Chaudhary, lawmaker from Loktantrik Samajwadi Party said it is not a good sign that the government has to allocate more budgets for financial management than the capital expenditure. For the next fiscal year, the government has allocated Rs 367 billion for the interest and loan repayments, while the development projects will get only Rs 352 billion.
Metmani Chaudhary, lawmaker from Nepal Communist Party (Unified Socialist) said, the budget could not bring any program for economically disadvantaged groups, remote areas and marginalized community people.
Bishnu Prasad Paudel, vice-chairman of the CPN-UML, expressed his dissatisfaction that Finance Minister Pun completely neglected to seek suggestions from the coalition partners while preparing the budget draft.
“Amid crunch of financial resources, the budget size is moderated while capital expenditure has been increased by Rs 65 billion. In this regard, the budget is balanced; however, it is challenging to enforce the provisions,” he said.
Finance Minister Pun however claimed that the budget has maintained a number of provisions to boost the confidence of the private sector. “Through the budget, the government has tried to protect the productive sectors and only few tax rates have been revised, while focusing on making responsible uses of limited resources of the country,” he said.
