Thursday, May 12, 2016

Economists suggest government to bring innovative and practical budget

The economists have suggested the government to bring innovative and practical budget.
Nepal Economic Association (NEA) organising a pre-budget interaction 'Nepal’s Forthcoming Budget: Priorities and way forward', suggested the government to focus on innovative and practical budget which can be implemented for sustainablt growth.
The organisation of economists also recommended the government to focus for overall economic revival in the wake of recent earthquake and blockades. With less than one per cent economic growth currently, it is ridiculous to see that state has billions of rupees in surplus but economic activities are not being carried out properly, they said, asking the government why it failed to implement budget and programmes, utilise money and invigorate economic activities. "The existing system has failed to work in a productive way which needs timely overhauling," they suggested.
As the earthquake has really brought Nepalis many challenges for the survival, the budget for the fiscal year 2016-17 should help gear the nation towards economic revival focusing on productivity, implementing rules and regulations and mobilizing government machineries effectively, they said, adding that the country is currently stands at a crossroad of low equilibrium of investment, decreasing business confidence, damaging investment climate that have failed to enhance economic activities, create employment opportunities through the enhanced capacities of the government and the private sector.
From the chair president of the assiociation Prof Dr Bishwambher Pyakuryal said that Nepal has gone through difficult stages in maintaining macroeconomic stability over last one year largely because of three fundamental reasons undesirably low economic performance before disaster, massive post-disaster destruction of human and physical infrastructures by the earthquake of April 25 and five months long economic blockade in Nepal’s Southern border beginning September 20. "Despite the fact that macroeconomic fundamentals were satisfactory, the capacity constraints in the productive sectors followed by declining exports and non-performance in infrastructure development limited economic potential in Nepal," he said, adding that the country is facing hyperinflation where general price level within an economy has increased rapidly and Nepalese rupees are losing real value.
He also urged the better coordination between Nepal Rastra Bank (NRB), Finance Ministry, National Planning Commission (NPC) and Office of Prime Minister urgently to rescue people from such impact, he suggested, asking the government to tighten monetary as a macro policy undertaken by the central bank and government’s commodity-specific policies to contain price need to go together.
Likewise, another economist Prof Dr Madan Kumar Dahal, on the occasion, said that the prolonged transition, dismal domestic investment, weak foreign investment and energy crisis have taken toll in the economy. "On the other, weak initiatives for giving relief for earthquake victims, low efforts in reconstruction, increased corruption and black marketing have made the people suffer," he said, adding, "In such a paradox, Nepal heavily plunged into the economic crisis which needs immediate revival with increased investment, attracting foreign investors and implementation of programmes effectively."
On the occasion, association's secretary general Gopal Prasad Tiwari and executive member Dr Shiva Raj Adhikari jointly made a presentation on 'Nepal’s Forthcoming Budget: Priorities and Way Forward”. They also stressed on budget allocation according to the defined programmes focusing on reconstruction needs to be expedited with sound working mechanisms.
Making a self-reliant economy is a tough choice which can be achieved with the expansion of linkages with the global economy, encouraging investors, focusing on agriculture with sufficient budget, implementing the programmes effectively, they mentioned while presenting the paper.
The programmes and policies endorsed by the parliament has also stressed support for youths on innovating ideas and loans to them based on qualification and certificates are very significant announcements, which might bring revolution in the economic sector if implemented with mechanism properly with frequent monitoring, they added.
Likewise, finance minister Bishnu Prasad Paudel, on the occasion, reiterated that the government is focusing on economic agendas rather than political issues.

1 comment: said...

Hey Kuvera,

Great post. I agree that a self-reliant economy requires innovation and investment in various sectors. However, it is important to also take advantage of new developing sectors. Even though the government can help growth, it is up to the people to make it happen. For example, many businesses are growing with the sharing economy that has developed online. Anyways, it is important for individuals like yourself to bring attention to these details. I hope you continue to write with the same passion.

Hope to connect with you.