Wednesday, July 3, 2013

Former finance ministers urge government to bring full budget without policy shift, drastic changes in tax rates

Former finance ministers today said that the incumbent government that has been formed to hold election should bring a full fledged budget without any policy shift and changes in the tax structures, except the international obligations.
Speaking at an interaction here today, they said that the budget should be accepted to all the political parties and a document that could be owned by an elected government.
However, former finance minister and UCPN-Maoist leader Barsa Man Pun said that the government should not be excited and bring a shift in current policy of three pillar economy; public, private and cooperatives. The government should also not change the tax rates drastically, he added.
The finance minister has promised the private sector that the budget will be private sector friendly and promote liberal market economy.
But another former finance minister and Rastriya Prajatantra Party (RPP) leader Prakash Chandra Lohani said that the pillars are not that important rather private sector encouragement is key to boost economic growth. “The budget must encourage private sector to invest more,” he said, adding that along with the private sector, the public spending is also very crucial to propel economic growth.
“The government need not bring any new programmes as there are many programmes of the past governments that have not yet been implemented, he added.
Likewise, former finance minister and CPN-UML leader Bharat Mohan Adhikari urged the government to bring the full-fledged budget but without changing tax rates. He also suggested encouraging investment, and particularly, spending more capital budget. “Capital expenditure and import substitution should get priority,” Adhikari added.
Former energy minister and Nepali Congress leader Prakash Sharan Mahat, on the occasion, said that the current government should change the tax rate for products which need to be discouraged.
Chief economic advisor at the Finance Ministry Dr Chiranjeevi Nepal said that the budget will hike the government employees’ salary but is looking for the resources.

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