The incumbent government is handing over a sound economy to the government-in-waiting despite some challenges, finance minister Dr Ram Sharan Mahat, said in a post-budget interaction here today.
Both the GDP growth and revenue collection exceeded government expectation.
"Though there are daunting challenges for the next government to meet exploding aspirations of people; tame inflation; check the intimidation and threat against business community that are the propeller of growth and largest employment generator and provide security for investment; and push the plummting exports up, the present macro-economica indicators are looking up," he added.
"With no major changes in tax rates and induction of new steps, mobilisation of a total of Rs 103.66 billion revenue seemed to be a challenging task. Despite instability in the country through out this fiscal year, the government managed to collect Rs 107 billion revenue, a 22 per cent more than the target," he said.
Based on the growth trend of revenue generation — in the year ahead — which was in an average of 19.5 per cent, he had predicted 17 per cent growth to meet the target in the fiscal year 2007-08.
He had predicted five per cent GDP growth but it recorded 5.6 per cent. "It was possible because the government has been able to maintain fiscal discipline," he added.
However, the government has failed to maintain inflation rate that it had predicted to be at around five per cent. The inflation has crossed 11.5 per cent.
The Constituent Assembly yesterday passed the Advance and Expenditure Bill worth Rs 73.53 billion — one third of the estimated expenditure of this fiscal year — that will be automatically replaced by a full-fledged budget.
Due to delay in formation of the new government, this government was forced to bring the Bill as a temporary arrangement to allow itself to carry on with routine expenses and revenue collections from tomorrow, start of the new Nepali fiscal year. The economic policies of the last budget also gets continuity until a full-fledged budget is brought by the new government.
Though, Mahat presented a rosy picture of the economy, CA members showed serious concerns over the rising inflation that is at 11.5 per cent at present and supply mismanagement of petroleum products.
Both the GDP growth and revenue collection exceeded government expectation.
"Though there are daunting challenges for the next government to meet exploding aspirations of people; tame inflation; check the intimidation and threat against business community that are the propeller of growth and largest employment generator and provide security for investment; and push the plummting exports up, the present macro-economica indicators are looking up," he added.
"With no major changes in tax rates and induction of new steps, mobilisation of a total of Rs 103.66 billion revenue seemed to be a challenging task. Despite instability in the country through out this fiscal year, the government managed to collect Rs 107 billion revenue, a 22 per cent more than the target," he said.
Based on the growth trend of revenue generation — in the year ahead — which was in an average of 19.5 per cent, he had predicted 17 per cent growth to meet the target in the fiscal year 2007-08.
He had predicted five per cent GDP growth but it recorded 5.6 per cent. "It was possible because the government has been able to maintain fiscal discipline," he added.
However, the government has failed to maintain inflation rate that it had predicted to be at around five per cent. The inflation has crossed 11.5 per cent.
The Constituent Assembly yesterday passed the Advance and Expenditure Bill worth Rs 73.53 billion — one third of the estimated expenditure of this fiscal year — that will be automatically replaced by a full-fledged budget.
Due to delay in formation of the new government, this government was forced to bring the Bill as a temporary arrangement to allow itself to carry on with routine expenses and revenue collections from tomorrow, start of the new Nepali fiscal year. The economic policies of the last budget also gets continuity until a full-fledged budget is brought by the new government.
Though, Mahat presented a rosy picture of the economy, CA members showed serious concerns over the rising inflation that is at 11.5 per cent at present and supply mismanagement of petroleum products.
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