DPM Adhikari tables ordinance budget

Deputy Prime Minister Bharat Mohan Adhikari today tabled the ordinance budget before the Legislature Parliament.
After a long political dead-lock the outgoing finance minister Surendra Pandey had brought Rs 337.90 billion budget for the current fiscal year on November 20 -- four months late than the regular schedule -- through ordinance. The ordinance has to be indorsed by the Legislature Parliament by February 15 for its validity. The Parliament might also approve the ordinance but it will be herculian task for the government to live up to the budget promises.
Though, the newly elected government has formed a panel to amend the budget for the fiscal year 2010-11, it doesnot enjoy the luxury of time as the current fiscal year has already passed nine months and only five months are remaining for the new fiscal year to start.
However, the possibility of amendment could also be not neglected. "Budget is a means of expressing economic commitment of political parties in power," finance secretary Rameshwor Prasad Khanal said, adding that the bureaucracy will honour the will of the political parties towards the people and the country.
"We can accomodate the changes within the present budget, if needed," he said, being hopeful of the approval of the ordinance.
But other experts express that the ordinance will be passed as the preparation of the next budget for the fiscal year 2011-12 has already been started.
Experts doubted the caretaker government's ability to contain inflation under the target and acheive growth rate due to the political dead-lock that has fuelled the shadow economy that is as big as formal economy. They had also questioned government's capacity of spending on development activities, and that has come true. The inability of the government on development spending has sqeezed the liquidity from the market and the banks are facing the liquidity crunch.
"Though, country used to face liquidity crunch for almost three months -- November, december and January -- every year, this year it has been extended till now," said Parshuram Kunwar Chhetri, chief executive officer of the Bank of Asia Nepal.
The delayed budget has not only find it difficult to achieve growth target as there is no supporting fiscal measures, it has also created confusion in the private sector.
Though there has been Balance of Payment (BoP) deficit situation in the past too, this time the situation has continued for almost 16 months, which is in itself a record in the history.
The new deputy Prime Minister Adhikari, who is also projected as the finance minister in the Jhalanath Khanal government, will not find it easy this time to manage the economy though he has experience of being a finance minister.
Though the government will easily meet the revenue target of Rs 216.64 billion, it will be a herculian task for the government to spend Rs 129.54 billion development expenses.