IMF sets stage for major anti-corruption reform plan in Nepal

An International Monetary Fund (IMF) technical assistance mission, led by Jonathan Pampolina, successfully concluded its scoping visit to Kathmandu yesterday (January 21).
The 10-day mission, which began on January 12, was conducted at the request of the Nepali authorities to lay the groundwork for a comprehensive Governance and Corruption Diagnostic (GCD).
The diagnostic is designed to identify governance weaknesses and corruption vulnerabilities that are critical to Nepal’s macroeconomic stability. The final goal is to create a prioritized and sequenced action plan to strengthen the country's state functions and integrity.
What are the focus areas of the diagnostic?
The mission utilized the IMF 2018 Enhanced Governance Framework to target core state functions, specifically focusing on Fiscal Governance, Financial Sector Oversight, Rule of Law, strengthening anti-money laundering and countering the financing of terrorism and Anti-Corruption Framework.
The IMF team held extensive consultations with a broad spectrum of state institutions, including the Ministry of Finance, Nepal Rastra Bank (NRB), the Supreme Court, and the Commission for the Investigation of Abuse of Authority (CIAA). To ensure a holistic perspective, the mission also met with business associations, civil society organizations, and international development partners.
The IMF staff praised the Nepali government's commitment to the diagnostic process. A full GCD mission is scheduled for the coming months to finalize reform recommendations. The process will culminate in a comprehensive report analyzing the severity of corruption and providing a roadmap for reforms intended to boost Nepal’s economic outcomes and institutional resilience.

FNCCI hails formation of 'Economic Reform Commission'

The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has welcomed the Finance Ministry's inclusion of the formation of a high-level economic reform commission in its 100-day programme.

The FNCCI had been demanding a high-level commission to coordinate reforms.

Given the lack of coordination among economic sectors, limited access of the private sector to policy-making levels, and the current need to revitalise the economy in the short- and long-term and achieve sustainable economic development, the FNCCI had proposed the commission to the government.

"I would like to thank the government for prioritising the commission as per the FNCCI's proposal," said president of the FNCCI Chandra Prasad Dhakal.

The FNCCI expresses its gratitude to deputy Prime Minister and finance minister Bishnu Paudel and the Finance Ministry for including this in the 100-day priority. "The FNCCI has also proposed a framework for operating the commission in a cost-effective manner," according to a press note issued by the FNCCI.

अर्थमन्त्रालयमा विष्णु पौडेलको पाँचौ इनिङ : अर्थतन्त्रको ‘स्लो पिच’मा हान्लान् त छक्का ?

सुन्दा अचम्म लाग्न सक्छ । तर, नेपालमा यो सामान्य हो । नेपाली काँग्रेसका सभापति शेरबहादुर देउवा पाँच पटक प्रधानमन्त्री भईसकेका छन् भने सोमबार केपी शर्मा ओलीले चौथो पटक प्रधानमन्त्रीको सपथ ग्रहण गरे ।

ओलीले चौथो पटक प्रधानमन्त्रीको सपथ ग्रहण गर्दा उनका सारथी विष्णु पौडेलले पाँचौ पटक अर्थमन्त्रीको सपथ ग्रहण गरेका छन् ।

ओली मन्त्रीपरिषदमा उपप्रधानमन्त्रीसहितको कार्यभार सम्हालेका पौडेलको सिंहदरबार यात्रा २०५३ सालमै सुरु भएको हो । २०५३ सालमा प्रधानमन्त्री लोकेन्द्रबहादुर चन्दको मन्त्रीपरिषदमा युवा, खेलकुद तथा संस्कृति मन्त्री बनेर मैदानमा उत्रिँदा पौडेल युवा नै थिए ।

त्यसैले २०८१ साल असार ३१ गते करिब तीन दशकपछि आठौं पटकको सिंहदरबार यात्रालाई अविस्मरणीय बनाउन उनी कति प्रतिबद्ध छन्, त्यो त आगामी दिनले देखाउला नै ।

किनकि यसअघि २०७९ पुसमा चौथो पटक अर्थमन्त्री बनेका पौडेलेको कार्यकाल छोटो रह्यो । तर, यसपटक उनी उपप्रधान तथा अर्थमन्त्री बन्दा पनि अनौठो संयोग बनेको छ ।

अघिल्लो दिन आइतबारसम्म पनि अध्यक्षले चाहे सघाउन सरकारमा जान तयार रहेको तर आफ्नो मन्त्री बन्ने धेरै इच्छा नभएको बताएका पौडेलले यसपटक अर्थमन्त्री पाउने/नपाउनेमा ढुक्क थिएनन् ।

यसपटक नेकपा एमालेले मन्त्री छान्ने सबै जिम्मा अध्यक्ष केपी शर्मा ओलीलाई दिएको थियो । अध्यक्ष ओलीले आफ्नो सरकार सफल बनाउन अर्थमन्त्रीमा कस्ता सारथी छान्लान् भन्ने धेरैको आ-आफ्नै अनुमान थिए । किनकि, पछिल्ला वर्षहरुमा अर्थमन्त्रीका धेरैजसो निर्णय नीतिगत भ्रष्टाचारमा लिप्त हुन थालेपछि अर्थ मन्त्रालय विवादमा आउने गरेको छ । र समग्र सरकार नै परिवर्तन भएको चर्चा राजनीतिक वृत्तमा व्यापक छ ।

त्यसमाथि अर्थतन्त्रको सुधारमा दह्रो मुटु राखेर अगाडि बढ्नु पर्ने अप्ठयारो परिस्थितीमा अर्थमन्त्री विभिन्न ब्यापारिक घराना तथा स्वार्थ समूहको खेलौना भएका कारण पनि पछिल्ला वर्षहरुमा अर्थमन्त्री बदनाम भएका छन् भने अर्थ मन्त्रालय आफ्नो निर्दिष्ट तथा लक्षित कार्यक्रम एवं बजेट कार्यान्वयनमा असफल हुँदै गएको छ । जसकारण समग्र निजी क्षेत्रको मनोबल घट्दै गएको छ, नेपालमा ब्यावसायिक वातावरण बिग्रँदै गएको छ ।

स्वाभाविक हो, अर्थतन्त्रमा ८१.५५ प्रतिशत योगदान दिने निजी क्षेत्रको मनोबल घटेपछि अर्थतन्त्र चलायमान हुन सकेको छैन । मनोबल बढ्न नसकेपछि निजी क्षेत्र लगानी गर्न हच्किएको छ । त्यसैले मुलुकमा नयाँ रोजगारी सिर्जना हुन सकेको छैन भने सरकारको आम्दानी राजश्व पनि बढ्न सकेको छैन ।

चालु अर्थिक वर्षका लागि सरकारले १४ खर्ब २२ अर्ब रुपैयाँ राजश्व उठाउने लक्ष्य राखेकोमा आर्थिक वर्षको अन्तिम दिन असार ३१ गते सोमबार (आजसम्म) १० खर्ब ३० अर्ब रुपैयाँमात्र उठाउन सफल भएको छ ।

चालु आर्थिक वर्षको राजश्व उठ्तीको प्रवृत्ती हेर्दा राती १२ बजेसम्ममा लक्ष्यको ७५ प्रतिशत राजश्व उठ्ने देखिन्छ । एकातिर विकास निर्माणका लागि सरकारलाई स्रोतको अभाव बढ्दै गएको छ भने अर्कोतिर राजश्व परिचालनमा अर्थ मन्त्रालय आसफल बन्दै गइरहेको परिप्रेक्ष्यमा अर्थमन्त्रीका रुपमा पौडेलको पाँचौ कार्यकाल चुनौतीले भरिपूर्ण रहेको छ ।

सरकारले राजश्व आम्दानी गर्न नसकेको मात्र होइन बजेट खर्च गर्न पनि सकेको छैन । खर्च भएका बजेट उत्पादक तथा अर्थतन्त्र चलायमान बनाउनेभन्दा पनि अनुत्पादक तथा अनौपचारिक अर्थतन्त्रलाई बढावा दिने प्रकृतीका छन् ।

त्यसैले अर्थमन्त्री पौडेलले निश्चित ब्यापारिक घराना हेरेर होइन, समग्र निजी क्षेत्रलाई नै प्रतिस्पर्धी बनाउने नीति ल्याउन सके मात्र मुलुकमा आर्थिक गतिविधि चलायमान हुन्छ ।

चालु आर्थिक वर्षमा बाह्य क्षेत्रमा सुधार भएको भए पनि अर्थतन्त्रको आन्तरिक क्षेत्र सुस्त नै छ । हुन त बाह्य क्षेत्र सुधारमा पनि सरकारको कुनै पनि प्रत्यक्ष्य योगदान छैन ।

किनकि, मुलुकमा रोजगारी नभएर विदेशीएका युवाले पठाएको रेमिट्यान्सको भरमा बाह्य क्षेत्रमा सुधार भएको हो । हालको रेमिट्यान्स आयको प्रवृत्ति हेर्दा विदेशिएका युवाले चालु आर्थिक वर्षमा १५ खर्ब रुपैयाँ रेमिट्यान्स पठाउने देखिन्छ ।

त्यसैले सरकारको ब्यवसायमैत्री नीतिले उत्पादन बढेर निर्यात प्रबर्धन भएर वा पर्यटन पूर्वाधारको विकासले पर्यटकको आगमन उल्लेख्यरुपमा बढेर बाह्य क्षेत्रमा सुधार भएको भए यसको दीगोपनाको वा सरकारको योगदानको चर्चा गर्न सकिन्थ्यो । तर, स्थिति त्यस्तो छैन ।

जनसंख्याको ठूलो हिस्सा विदेशिएका कारण पनि बजारमा माग सिर्जना हुन सकेको छैन । माग सिर्जना नहुँदा उत्पादनमा पनि संकुचन आएको छ । उद्योगहरु पूर्णक्षमतामा संचालन हुन सकेका छैनन् । जसको कारण अर्थतन्त्र एउटा गोलचक्करमा फसेको छ ।

तसर्थ पनि अर्थमन्त्रीमा पाँचौ इनिङ पौडेलको लागि फलामको च्यूरा सावित हुने अनुमान गर्न सकिन्छ ।

बाह्य क्षेत्रको सुधारको दीगोपनामा शंका भए पनि बाह्य क्षेत्र सुधारीएको फाइदा लिएर आन्तरिक क्षेत्र सुधारमा प्रयत्न गर्न सकिन्थ्यो । तर, नेपालको दुर्भाग्य, अर्थतन्त्र सुधार गर्ने दह्रो मुटु भएको अर्थमन्त्री पाउनै सकेन देशले ।

अर्थमन्त्रीहरु ब्यापारिक घरानाका मुन्शी वा स्वार्थ समूहको नीतिगत भ्रष्टाचारका साक्षीमात्र भएका कारण सिंहदरबारमा फोटो झुण्ड्याउने बाहेक खासै केहि उल्लेखनीय काम गर्न सकेनन् । कसै कसैले केहि गर्न खोजे पनि प्रधानमन्त्री हावी भए ।

त्यसैले, २०६४ सालदेखि पछिका सबैजसो सरकारको नीति अर्थतन्त्र सुधार गर्नेभन्दा पनि राज्यका स्रोत साधन दोहन गर्नमा केन्द्रीकृत भएका कारण अर्थतन्त्र चलायमान हुन सकेन । अझ २०७४ साल पछि त खुलेआम नीतिगत भ्रष्टाचार संस्थागत हुन थाल्यो ।

उदाहरणको लागि हेरौं न, एउटा नियामक निकाय धितोपत्र बोर्डको अध्यक्ष चयनमा वर्तमान तथा पूर्वप्रधानमन्त्री र अर्थमन्त्रीको अनावश्यक र रहस्यमय रुची, राजनीतिक खेलकुद तथा हस्तक्षेप ।

त्यसैले, अर्थमन्त्रीका रुपमा पौडेलले मुलुकमा उद्यम गरेर खाने वातावरण बनाउँदा कुनै पनि ब्यावसायिक घरानाको स्वार्थमा धक्का पुग्दैन । बरु झन् ब्यवासायिक घरानाको पनि बजार बढ्छ भनेर बुझाउन सके भने उनको कार्यकाल आधा सफल हुन्छ ।

त्यसपछि, बढ्दो चालु खर्च र चालु खर्चको प्रोडक्टिभिटी र इफिसियन्सीमाथि निर्मम समीक्षा जरुरी छ ।

आर्थिक वर्ष २०८१/८२ देखि सरकारले विगतमा लिएको आन्तरिक तथा बाह्य ऋणको साँवाब्याज तिर्नमात्रै ५ खर्ब रुपैयाँभन्दा बढी खर्च हुने देखिन्छ । २०७४ मा ओली प्रधानमन्त्री भएपछि अन्धाधुन्धा ऋण लिने र अनुत्पादक क्षेत्रमा खर्च गर्ने कुप्रथा सुरु भएको थियो ।

ओलीको ४३ महिने कार्यकालमा पाैडेल पनि छोटो समय अर्थमन्त्री बनेका थिए । र, त्यो ४३ महिनामा २५० प्रतिशतले ऋण बढेको थियो । सार्वजनिक ऋण व्यवस्थापन कार्यालयको तथ्यांकअनुसार आर्थिक वर्ष २०७३/७४ मा ६ खर्ब ९७ अर्ब ६९ करोड रुपैयाँ बराबर रहेको राष्ट्रिय ऋण १६ खर्ब पुगेको थियो । अहिले राष्ट्रिय ऋण २४ खर्ब रुपैयाँ नाघिसकेको छ ।

विगतमा पार्टी महासचिव र अर्थमन्त्रीकारुपमा अन्धाधुन्ध राष्ट्रिय ऋण लिनका लागि रोक्न पाैडेलले खासै भूमिका खेलेको देखिँदैन ।

अर्कोतिर २०५१ सालमा तत्कालीन मनमोहन अधिकारीको सरकारले वृद्धभत्ता बाँडेर वाहवाही कमाएको थियो । नेकपा एमालेले यसैलाई बेचेर अहिलेसम्म पनि राजनीतिक लाभ लिइरहेको छ । त्यसपछिका अन्य सरकारले पनि वृद्ध तथा सामाजिक सुरक्षा भत्ता बढाउन प्रतिस्पर्धा गर्दा अहिले राष्ट्रको ढुकुटीबाट वार्षिक ३ खर्ब रुपैयाभन्दा बढी खर्च हुँदै आएको छ ।

राष्ट्रिय आम्दानी बढाउन ध्यान नदिने र आफ्नै खल्तीको जसरी राष्ट्रको ढुकुटीको पैसा बाँड्ने विकृति अब देशले धान्नसक्ने अवस्था छैन । आफ्नै पार्टी एमालेले ल्याएको सामाजिक सुरक्षा भत्ताकाे दायित्व प्रधानमन्त्री ओली र अर्थमन्त्री पौडेललाई फलामको च्यूरा बन्ने खतरा छ ।

के विष्णु पौडेलले चलायमान बनाउलान् त अर्थतन्त्र ?

त्यसैले, नेपालमा यतिखेर प्रधानमन्त्रीको हस्तक्षेपबिना काम गर्न सक्ने, निजी क्षेत्रमैत्री तथा जोखिम लिन सक्ने अर्थमन्त्री चाहिएको छ । पौडेलले आफ्नो पाँचौ कार्यकाल सुरु गर्दै गर्दा यी चुनौती कसरी सामना गर्दछन्, त्यसैबाट उनको यो कार्यकालको समीक्षा हुनेछ ।

किनकि, पौडेललाई सुस्ताएको अर्थतन्त्रलाई चलायमान बनाउने चुनौती एकातिर छ भने नीतिगत भ्रष्टाचारसँग लड्दै जोखिम लिएरै भएपनि अर्थतन्त्रका संरचनागत सुधार गर्ने अर्को चुनौती छ ।

निर्माण व्यवसायीका भुक्तानीका समस्या, लघुवित्त र सहकारीका समस्याजस्ता अर्थतन्त्र र बजारलाई सिधै तल्लो तहमा समेत संकट पारेका क्षेत्रको उद्दार गर्न उनी कति केन्द्रित हुन सक्छन् र प्रधानमन्त्रीको कत्तिको साथ पाउँछन्, त्यसले उनलाई सफल वा असफल बनाउने स्पष्ट छ ।

सपथग्रहण गरेर पौडेल अर्थमन्त्रालय पस्दा चालु आर्थिक वर्षको अन्तिम दिन परेको छ । नयाँ आर्थिक वर्षसँगै बजेट कार्यान्वयन गर्ने अर्को चुनौती पौडेलमा छ । अघिल्ला अर्थमन्त्री वर्षमान पुनले केहि स्वार्थी समूहको लागि परिवर्तन गरेका आर्थिक ऐनलाई पौडेलले कसरी समायोजन गर्दछन्, त्यसले पनि उनको कार्यकालको समीक्षा हुनेछ ।

बजेट आइसेकेको भए पनि आगामी आर्थिक वर्षको मौद्रिक नीति ल्याउने तयारीमा नेपाल राष्ट्र बैंक छ । मौद्रिक नीतिले वित्त नीतिलाई सघाउने हो । किनकि, मौद्रिक नीतिका निश्चित सीमा हुन्छन् । बाह्य क्षेत्र बलियो भयो भनेर माैद्रिक नीतिमार्फत सस्तो ब्याजमा बजारमा वालछ्याल पैसा पठाउँदा देशको अर्थतन्त्रमा कस्तो संकट आउँछ भनेर हेर्न अन्त कतै जानु पर्दैन ओली प्रधानमन्त्री भएको बेला गभर्नर महाप्रसाद अधिकारीले ल्याएको पहिलो मौद्रिक नीति हेरे पुग्छ ।

अहिले विगतमा जस्तो मौद्रिक नीति चलाउन सक्ने अवस्थामा अर्थमन्त्री छैनन् । किनभने, अन्तर्राष्ट्रिय मुद्रा कोषसँग ५० करोड अमेरिकी डलर सहायता लिन अर्थमन्त्री र गभर्नरले कडा शर्तमा सहमति जनाएका छन् । यतिसम्म कि कुनै पनि नयाँ नीति, नियम बनाउँदा आइएमएफसँग सल्लाह गर्ने शर्तमा हस्ताक्षर गरेका छन् ।

आइएमएफले नेपालको वित्तीय क्षेत्रको सुधारमा दबाब बढाउँदै लगेको छ । र, वित्तीय क्षेत्रको सुधारले मात्रै नपुगेको भन्दै वित्त क्षेत्रको सुधार गर्नुपर्ने पनि आइएमएफले सुझाव दिँदै आएको छ ।

पछिल्ला केहि वर्षदेखि बजेटभन्दा पनि मौद्रिक नीतिमा निजी क्षेत्रको चासो बढेको छ । वास्तवमा बजेट अर्थात् अर्थ मन्त्रालयको असफलताले निजी क्षेत्रको चासो मौद्रिक नीति अर्थात् राष्ट्र बैंकतर्फ बढेको हो । अर्थमन्त्रालयप्रति विश्वास जगाउन पौडेलसँग के योजना छ, यसले पनि उनको कार्यकालको समीक्षा हुनेछ ।

नेपालको अर्थतन्त्र आर्थिक कृयाकलापमा नभइकन जग्गा कारोबारी र बिचाैलियाको जालोमा फसेका कारण पनि अर्थमन्त्रीलाई अर्थविदभन्दा बिचौलियाले चलाएको धेरै अर्थविद्हरुको धारणा छ । त्यसैले संरचनागत परिवर्तन नभएसम्म अर्थतन्त्रले गति लिने विश्वास गर्न सकिन्न । यसका लागि आर्थिक सुधारको खाँचो छ । तर, राजनीतिक दलका कार्यकर्ता र बिचौलियाले घेरिएको अर्थमन्त्रालयले आर्थिक सुधार गर्न सक्दैन भन्ने आम सर्वसाधारणको बुझाइ छ ।

त्यसैले पनि पौडेललाई काम गर्न सहज छैन ।

र, यसकारण पनि पौडेलले अर्थतन्त्रको ‘स्लो पिच’मा खेल्न गाह्रो छ कि यो गठबन्धन सरकार हो । हुनत आर्थिक सुधारमा सत्ता सहयात्री नेपाली काँग्रेसको कुनै रोकावट नहुनु पर्ने हो । किनभने आर्थिक सुधार नेपाली काँग्रेसको पनि एजेन्डा हो । तर, नेपाली काँग्रेसभित्र पनि बिचाैलियाको ठूलै समूह छ जो अर्थतन्त्रको बारेमा पटक्कै चिन्तित छैन ।

तत्कालका लागि सुस्त भएको अर्थतन्त्रलाई चलायमान बनाउन सेयर बजार, जग्गा कारोबार र हायर पर्चेजले काम गर्ला । तर, दीर्घकालमा उत्पादन र उत्पादकत्व नबढाए सेयर बजार, जग्गा कारोबार र हायर पर्चेजले मात्र अर्थतन्त्रलाई धानेर राख्न सक्दैन । त्यसैले पनि सत्ता सहयात्री नेपाली काँग्रेसको पूर्णसहयोगमा आर्थिक सुधारका योजना बनाउनु पौडेलको पहिलो प्राथमिकता हुनुपर्छ ।

नेकपा एमालेका उपाध्यक्ष तथा एमाले र माओवादी केन्द्रबीच एकता भई नेकपा गठन हुँदा महासचिव भइसकेका पौडेलले ३० को दशकमा तत्कालीन मालेबाट राजनीतिक यात्रा सुरु गरेका थिए । उनी २०४७ मा एमालेको केन्द्रीय सदस्य बनेका थिए ।

त्यसैले राजनीतिमा पौडेल पुराना र अनुभवी खेलाडी हुन् । तर, निरन्तर बदलिँदो आर्थिक संरचना र सुस्त अर्थतन्त्रलाई चलायमान बनाउन यसपटक पौडेलले धेरै मिहेनत गर्नु पर्ने देखिन्छ ।

प्रतिनिधि सभा निर्वाचनमा रुपन्देही- २ बाट निर्वाचित पौडेलले अर्थतन्त्र सुस्त भएको बेलामा अर्थमन्त्रीको रुपमा आफ्नो करियरको पाँचौ इनिङ सुरु गर्दा राजनीतिक सुझबुझका साथै निर्मम भएर अर्थतन्त्र सुधारका काम गर्दा मात्र केपी ओलीको सरकारमात्र नभएर देश नै सफल हुन्छ ।

अन्यथा, नेपालको बजेटरी इतिहासमा पहिलो अर्थमन्त्री सुवर्ण शमशेरदेखि आजसम्म भएका अर्थमन्त्रीहरु कतिजनाको नाम नेपालीलाई याद छ र ?

अर्थनीतिको बेमेल

नेपाली काँग्रेस तथा नेकपा एमाले सम्मिलित सरकार बनेसँगै अब बजारमात्र होइन आर्थिक नीतिमा पनि समन्वयन गर्नु पर्ने हुन्छ। हुनत संविधानमा समाजवादउन्मूख अर्थतन्त्र लेखिएको छ । तर, राष्ट्रियता, प्रजातन्त्र र समाजवादको सैद्दान्तिक जगमा उभिएको नेपाली काँग्रेसको आर्थिक नीति २०४६ सालको परिवर्तनपछि उदार अर्थतन्त्रमा रुपान्तरित भएको छ । २०४८ सालदेखि नै नेपाली काँग्रेसमा समाजवादी धारका नेताहरुको पकड कम हुँदै गएको हो ।

२०४८ सालको नेपाली काँग्रेसका सभापति गिरिजा प्रसाद कोइरालको सरकारका पालमा लिइएको उदार अर्थनीतिका कारण नेपालको अर्थतन्त्रमा सकारात्मक परिवर्तनहरु धेरै भएको भए तापनि सामयानुकुल सुधार हुन नसक्दा तथा उदार अर्थनीति लागू गर्ने क्रममा भएका केही त्रुटीहरु समयमै नसच्याइएका कारण उदार अर्थनीति माथि पार्टीभित्रै बुझाइमा एकरुपता छैन ।

एउटै पाटीभित्रै त एकरुपता छैन भने नेकपा एमाले अर्थात् कम्युनिष्ट स्कुलिङबाट आएको पार्टीले नेपाली काँग्रेसको आर्थिक नीतिमा सहमति जनाउने सैद्दान्तिक आधार पनि छैन । तर, नेकपा एमाले सैद्दान्तिकरुपमा कम्युनिष्ट भए पनि उसका ब्यवहार तथा आर्थिक नीतिमा पनि एकरुपता छैन । र, काँग्रेसले गरेको निजीकरणलाई उद्योगधन्धा बेचेको आरोप लगाउँदै आएको छ । यस्तो अवस्थामा गठबन्धन सरकारले निजीकरणलाई कसरी एउटै दृष्टिले हेर्न सक्छ ?

यसैबिच, विपक्षी र आलोचकहरुले यो गठबन्धन काम गर्न नभइ भ्रष्टाचारका ठूला फाइल रोक्न र मिलिभगत राज्यकोषको दोहन गर्न बनेको आरोप लगाइसकेका छन् ।

प्रधानमन्त्री प्रचण्डले विश्वासको मत माग्दै यही असार २८ गते संसदमा भनेका छन्- ‘दुई पार्टी डरले जोडिनुभयो, त्यो सुशासनको डर हो । जुन परिस्थितिमा, जे कारणले कांग्रेस र एमाले मिल्न खोज्नुभएको छ, तपाईहरूको सहकार्यको सहमतिलाई जनताले अनुमोदन गरेको छ कि छैन, आफै मूल्याङ्कन गरिरहनुभएको होला । सामान्यतः लोकतन्त्रमा मुख्य प्रतिस्पर्धी दलहरू मिलेर सरकार बनाउँदैनन् । संसारभरिका इतिहासका अनुभवहरूले देखाएका छन्, त्यस किसिमका गठबन्धनले निरंकुशता र स्वेच्छाचारिता बढाएका छन्, लोकतन्त्रलाई कमजोर बनाएका छन् । त्यसैले सामान्यतः यस्तो अभ्यास हुँदै हुँदैन ।’

नेकपा एमालेको सैद्दान्तिक रुझान कम्युनिष्ट भए पनि पछिल्लो समय केपी ओली प्रधानमन्त्री भएपछिका दिनमा निजी क्षेत्रसँगको बढ्दो हिमचिमले निजी क्षेत्रमैत्री बन्ने प्रयास गरेको देखिन्छ । त्यसैले आजको दिनमा सरकारले चुरोट, जुत्ता बनाउने होइन, नीति बनाउने हो र निजी क्षेत्रलाई काम गर्न दिने हो भन्ने मान्यता नेकपा एमालेमा पनि विकसित भएको देखिन्छ ।

तर, सैद्दान्तिक आधार नभएका कारण नेकपा एमालेले निजी क्षेत्रमैत्री बन्दै गर्दा केहि त्रुटिहरु गरेको छ । २०७४ सालपछि केपी ओली प्रधानमन्त्री हुँदा निजी क्षेत्रको नाममा केहि ब्यापारिक घरानाको लागि फाइदा हुने नीति ल्याएका उदाहरणहरु प्रसस्त छन्। त्यसैमध्ये गिरीबन्धु टी स्टेटकाे विवाद भर्खरैमात्र छताछुल्ल भएकाे छ ।

त्यसैले पौडेललाई पाँचौ पटक अर्थमन्त्री बन्दा प्रधानमन्त्री ओलीको कत्तिको साथ रहन्छ भन्ने प्रश्न पनि महत्वपूर्ण छ । वा, अर्थमन्त्रीका रुपमा अहिलेको अर्थतन्त्रको समस्यालाई निकै गहिरोसँग बुझ्नेगरी अध्ययन गरेर जिम्मेवारी सम्हालेका छन् कि पहिलेको जस्तै ‘चलि त हाल्छ नि’ भन्ने सोचले आएका छन्, त्यो हेर्न कम्तिमा हनिमुन अवधि कुर्नैपर्ने हाेला ।

एकातिर गठबन्धन सरकारका सैद्दान्तिक, ब्यवस्थापकीय तथा ब्यावहारिक बाध्यता अर्कोतिर आफ्नै प्रधानमन्त्रीको हठीपनाका कारण अर्थमन्त्री पौडेलले अर्थतन्त्रको स्लो पिचमा कति रन बनाउलान् त ?

जबसम्म पिचमा दुबै खेलाडी एउटै गतिमा दौडेर रन लिने अनि एउटै लयमा ब्याटिंग गर्ने तादात्म्यता कायम गर्न सक्दैनन्, एउटै खेलाडीले मात्रै खेल जिताएको कमै रेकर्ड छ ।

तर, काँग्रेस-एमालेको गठबन्धनलाई विगतमाजस्तो अहिले गल्ती गर्ने छुट त छैन नै, त्यो भन्दा पनि ठूलो चुनाैति राम्रो काम गरेर युवाहरुको मन जित्नु र अर्थतन्त्रलाई ट्र्याकमा ल्याउनुपर्ने छ ।

होइन भने २०८४ को चुनाव सुखद् नहुने निश्चित छ !

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२०७८ मा प्रधानमन्त्री केपी शर्मा ओली सरकारका अर्थमन्त्री

२०७७ मा प्रधानमन्त्री केपी शर्मा ओली सरकारका अर्थमन्त्री

२०७२ मा प्रधानमन्त्री केपी शर्मा ओली सरकारका अर्थमन्त्री

२०६७ मा प्रधानमन्त्री झलनाथ खनाल सरकारका रक्षामन्त्री

२०६५ मा प्रधानमन्त्री पुष्पकमल दाहाल सरकारका जलस्रोत मन्त्री

२०५३ मा प्रधानमन्त्री लोकेन्द्रबहादुर चन्द सरकारका युवा, खेलकुद तथा संस्कृति मन्त्री

(Published: https://clickmandu.com/2024/07/327198.html)

Finance Minister orders to submit expenditure plan within a week

Finance Minister Janardan Sharma today asked the ministries to submit an expenditure plan within a week to expedite the capital expenditure.

The government has failed to boost the capital expenditure putting pressure on Finance Ministry as it has aimed to increase the capital expenditure to 90 per cent – in the current fiscal year 2021-22 – in its mid-term budgetary review.

“It seems the target of  mid-term budgetary review is not going to be met as according to the progress report as of today,” he said, asking the secretaries of the top 10 ministries, which has high capital budget allocation.

Speaking at a programme organised at the Finance Ministry to review the budgets of 10 ministries with high capital budget allocation till March 8, the finance minister also directed to implement the budget according to the mid-term review.

Pledging that the Finance Ministry will extend all possible assistance to increase the capital expenditure to 90 per cent, the minister said that the ministries, which have a large capital budget, have spent less, whereas the ministries with less capital budget have spent more. “It is a matter of concern that the progress of the ministries with high capital expenditure is not satisfactory, whereas the ministries with low capital expenditure allocations have seen a very high percentage of progress.

“It is still more serious concern that the ministries that are unable to spend the allocated capital budget are asking for more budget,” said finance secretary Madhu Kumar Marasini, on the occasion.

The ministries, however, claimed that they could spend up to 85 per cent of the capital budget, though, according to the Office of the Comptroller General, the government has not been able to spend 20 per cent of the capital budget till date.

Finance Minister urges not to indulge in digital networking business

Finance Minister Janardan Sharma asked not to indulge in digital networking business.

Virtually addressing a meeting of Maoist Centre Karnali Province, he argued that digital networking has caused capital flight. "It is illegal," he said, adding that people should rather help help government curb such crime. 

He also asked to create employment and increase production. "By doing so, one can contribute to the creating capital which will ensure local people's ownership in the natural resources," he added.

Can Poudel revive economy?

 Bishnu Prasad Paudel has been appointed finance minister for the second time.

First time, when he was finance minister, the country was going through undeclared economic blockade imposed by India – after the declaration of Constitution – also in the immediate aftermath of devastating earthquakes that shook the country. And the economy was in tatters. 

But this time, the whole world is facing crisis due to coronavirus. Nepal obviously has been hit hard – despite the earlier finance minister Dr Yub Raj Khatiwada’s unacceptance – and the economy is again in tatters, this time the worst compared to in 2015. The economy is on the brink of recession amid a deadly Covid-19 pandemic.

The then finance minister Dr Khatiwada brought the budget for the current fiscal year – during the lockdown time that was imposed on March 24 to contain the spread of coronavirus till 120 days – as if the country is going through normal times. However, neither the last fiscal year’s budget could be implemented nor the current fiscal year’s budget will be implemented. And at this time, Prime Minister KP Sharma Oli has appointed Poudel as the finance minister on October 14. Can Poudel dare to revive the economy?

“Of course, Poudel can revive the economy, if he dares to come out of party polity, and think of the country,” according to senior economist Dr Chanrdmani Adhikari. “Extreme remedy is necessary to cure extreme disease,” he said, adding that the conventional remedy does not work on newer challenges. “Can Poudel dare to revive the economy depends on how accurately he diagnoses the disease?”

The government is short of resources, to fight the pandemic, he said, adding that maintaining the financial balance should be his the top priority as revenue is tanking due to a slump in economic activities amid the outbreak of coronavirus and subsequent containment measures imposed by the government. 

According to the Financial Comptroller General Office (FCGO), the government has been able to mobilise Rs 172.37 billion in revenue till October 17. But, during the period, the government spent Rs 182.85 billion in recurrent expenses – mainly the salaries and administrative cost – putting pressure on government treasury. The revenue mobilisation against the gross domestic product (GDP) in the last fiscal year declined after witnessing an ascending trend for 10 years, according to the Finance Ministry. Revenue to GDP ratio stood at 21.07 per cent, down from 23.99 per cent of GDP in the previous fiscal year.

Due to resources constraints Poudel’s predecessor Dr Khatiwada could not bring any stimulus package – through the budget for the current fiscal year – to rescue the economy, neither the central bank – though the Monetary Policy – rescue the private sector. The private sector – battered by the coronavirus and containment measures including lockdowns – want a relief and stimulus package from the government. Those who have lost their livelihoods and incomes are asking the government to support them. The government has neither been supportive to the private sector nor create employment and demand in the market. Will Poudel dare to create demand in the market, and help create employment?

Not only the revenue is shrinking but also external loan and grant due to global pandemic that has bleed the global economy red. The development partners are also facing economic crises, and it is less likely for them to come to Nepal’s rescue, though some of the multilateral agencies, including the World Bank (WB) and Asian Development Bank (ADB), have already helped Nepal. “Thus the government is borrowing from the domestic market – domestic borrowing – early in the current fiscal year to pay the salaries to the government employees, which is very unlikely,” Adhikari said, adding that raising domestic debt has its own limits. “There is a ceiling on domestic borrowing, and the government cannot collect more than Rs 225 billion in domestic debt.”

High domestic borrowing means higher interest rates, and crowding out private sector investment that is a must to give a push to the dipping economy.

Apart from the coronavirus crisis Poudel also faces the pressure from his own party to be populist by distributing the resources to the politically motivates programmes like his predecessor Dr Khatiwada. “Poudel has to find a balance between his party’s populist temptation, and medium as well as long-term economic development aspiration of the country,” Dr Adhikari said. “Can he dare to go against his party’s populist temptation?”

The 120-day lockdown and prohibitory orders have already resulted in massive closure of businesses with widespread job losses making millions jobless. “The four-month-long lockdown imposed to contain the spread of Covid-19 forced 61 per cent of businesses to close down completely, causing a dire effect on the economy by rendering tens of thousands of people jobless and disrupting the production and supply chain,” according to a survey released by the central bank in August.

The survey also revealed that 22.5 per cent of employees were laid off by businesses of the manufacturing and service sectors, and two-thirds of the laid-off employees were either working on a contract basis or were hired temporarily. Likewise, Sectors like tourism, aviation; micro, small and medium enterprises; and the transport sector suffered badly. Informal sector jobs have also been lost amid reduced economic activities.

On top of these economic problems, Poudel also has to face the humanitarian crisis. He has to find ways to prevent the country from facing an unprecedented humanitarian crisis. The crisis could be fought, if Poudel dare to cut down unnecessary expenses as prescribed by Public Expenditure Review Commission led by Dilli Raj Khanal. “The Commission recommended a number of measures to reduce administrative expenditure including shutting down various government offices,” Dr Adhikari said, adding that the government has not taken any step towards cutting down the unnecessary expenses. “The government, instead of cutting unnecessary expenses, is completely indulged in corruption in the time of coronavirus crisis.”

Could the newly appointed finance minister Poudel dare to reduce facilities enjoyed by the lawmakers and those holding constitutional posts, suspending the lawmaker-led Local Infrastructure Development Partnership Programme and controlling corruption.

In extraordinary situations, extraordinary measures are necessary, and Poudel needs to dare it.

Prime Minister reshuffles cabinet, Poudel becomes finance minister

 Prime Minister KP Sharma Oli reshuffled the cabinet and adding three minister in the vacant ministries.

The Prime Minister appointed Bishnu Poudel as new finance minister, whereas deputy prime minister and defence minister Ishwar Pokhrel has been removed from Defence Ministry and appointed to the minister for Office of the Prime Minister and Council of Ministries. But he is still the deputy prime minister. Prime Minister Oli has kept the Defence Ministry portfolio with himself.

The Finance Ministry, which was with Oli since Dr Yub Raj Khatiwada resigned earlier this month, has been given to Poudel, who is also the general secretary of the ruling Nepal Communist Party (NCP). Poudel will face huge challenges as finance minister in the time of crisis. But could Poudel dare to provide any remedy – facing from within the populist-party dictum – for employment creation, low morale of private sector and battered economy. However, by appointing Poudel as finance minister the ‘politically-smart’ Prime Minister ensured his majority in his party’s secretariat. As the Prime Minister Oli reshueffled the cabinet for his own benefit, his promises that a reshuffle in his administration will be ‘based on merit, system and performance’, has seen as his other promises.

Likewise, Pokhrel also faces criticism for failing to handle the Covid-19 pandemic as the coordinator of the High-level Covid-19 Crisis Management Centre. He also faces corruption allegations in the medical equipment procurement.

The Prime Minister has also appointed Parbat Gurung – who was minister for children, women and senior citizens – as minister for communication and information technology.

Pokhrel’s removal from the Defence Ministry is largely guided by his ‘not-so-good’ relations with the Nepal Army as he dragged the national defence force into controversy over the procurement of medical equipment to fight Covid-19.

The other faces in the cabinet include Krishna Gopal Shrestha as the minister for Urban Development and Lilanath Shrestha as the minister for women, children and senior citizens. Shrestha had once switched sides to Nepal briefly but this time he is rewarded for glorifying Prime Minister Oli.

Likewise, Lilanath Shrestha had contested against Pushpa Kamal Dahal from Siraha Constituency 5 in the 2013 Constituent Assembly (CA) elections from then CPN-UML but had lost by a small margin. Shrestha and Raghubir Mahaseth are the only two leaders, who won the elections for former UML in Province 2.

The cabinet reshuffle is going to start a new feud in the ruling as the another chair of the ruling party Puspa Kamal Dahal ‘Prachanda’ and senior leader Madhav Kumar Nepal faction have been asking the Prime Minister to reshuffle the cabinet according to the recommendation of the party secretariat, but the Prime Minister reshuffled the cabinet on his own. Even party chairmen Oli and Dahal held a two-hour-long meeting on cabinet reshuffle today afternoon. The cabinet reshuffle is the Prime Minister’s prerogative, where the party has been unnecessarily trying to encroach his rights. 

“Dahal is not happy with the prime minister’s move,” according to a leader close to Dahal. “He has been trying to convince Oli for a Cabinet reshuffle as per the spirit of the recent decisions of party meetings,” the leader said, adding that Oli did not even discuss his plan to rejing the Cabinet.

Dahal had long been pressing Oli to recall all ministers and make fresh appointments based on merit and performance.

Supreme Court issues show-cause on tax rise on electric vehicles

The Supreme Court today issued a show-cause order against the government decision to raise the taxes on electric vehicles (EVs).
The government – through the budget for the current fiscal year 2020-21 – has increased the customs duty from 10 per cent to 80 per cent and excise duty from five per cent to 80 per cent despite its tall claims of promoting the clean energy and substitute the import of petroleum products that is the largest import of the country.
Due to the hike in the customs and excise duty, traders have stopped import of electric vehicles lately. A single bench of the Supreme Court Justice Ananda Mohan Bhattarai has issued a show-cause order showing concern on the tax hike in electric vehicles as a serious matter. Claiming that the rise in tax has made electric vehicles unaffordable to the general people, Jury Nepal – a non-government organisation – has filed a writ petition against the government move.
The provision – to raise tax on electric vehicles by discouraging the use of environment-friendly automobiles – has been not only against the government’s own policy to substitute the fossil-fuel vehicle by 2030, and also Prime Minister’s pledge to promote the clean energy through the use of electric vehicles.
The government move has also been criticised on the ground that it will hit the aspiration of making the country self-reliant in energy supply and reduce the ballooning trade deficit by substituting the import of fossil fuel.
However, finance minister Dr Yuba Raj Khatiwada has been defending his move – to increase taxes on electric vehicle against the government policy – claiming that the government is compelled to revoke the scheme to check misuse of the government package due to surge in imports of luxury electric cars.

Government forms external resources mobilisation committee

The government has formed an external source mobilisation committee to effectively mobilise the external resources received from multilateral development partners to combat the spread of the coronavirus and the unfavourable situation arising out of it.
“As the coronavirus will have more lasting impact on countries like Nepal which has limited resources, external support and resources are crucial to such countries,” finance minister Dr Yuba Raj Khatiwada said, proposing to form the committee led by finance secretary in a meeting with multilateral development partners that was held today through a video conference.
“The committee will also comprise members of government agencies, private sector and development partners,” the finance minister said, adding that the coronavirus pandemic is the biggest human and economic crisis of the 21st century.
The finance minister also sought further support from development partners to fight the situation caused by the coronavirus citing that traditional support policies and programmes of development partners will not be enough to combat the coronavirus and its impact.
Stressing on the need for collaborative efforts to fight against it, he also promised that Nepal will leave no stone unturned to fight against the pandemic and revive businesses and economy.
Though, the country has foreign exchange reserve that can sustain the imports of 8 months’ of merchandise and service imports, the finance minister, on the occasion, also asked the multilateral development partners to differ the loan and interest payment schedule as a precaution that the impact of pandemic could be longer.
Highlighting the crucial role of development partners in the process, the finance minister has sought an extra time just to ensure that forex reserve may not deplete due to dwindling exports receipt and decreasing remittance that is going to drop further in the months to come as most of the labour destination countries have been hit by the pandemic. Nepal has also closed the international traffic to contain the coronavirus, which has left some 30,000 foreign employment aspirants in dilemma.
The participating representatives of multilateral development partners accepted Nepal’s proposal to form a committee that will be formed under the finance secretary Shishir Dhungana.
Representatives of the World Bank, Asian Development Bank, International Monetary Fund, International Finance Corporation, Asian Infrastructure Investment Bank and the United Nations took part in the video conference.
The representatives of malitaral development partner agencies – in the meeting – stressed on the need to ensure availability of health resources to cope with the pandemic and effective policies and programmes to revive the economy.

Revenue collection growth rate plunges

The government witnessed slump in revenue mobilisation in the first four months of the current fiscal year 2019-20 due to fall in imports.
The revenue mobilisation growth rate stood at just 3.56 per cent in the first four months, compared to the average growth rate of 20.85 per cent in the same period in the last five fiscal years, according to the Finance Minister.
The Finance Ministry has been able to mobilise Rs 256.77 billion – an increase of 3.56 per cent from Rs 247.94 billion last year’s four months – in the four months of the current fiscal year due to failing imports as the key source of revenue is imports.
The revenue mobilisation dropped due to reduced imports of diesel, petrol, cement clinkers and vehicles, which in the previous fiscal years contributed massively to the state coffers. According to the Trade and Export Promotion Centre (TEPC), import of petroleum products decreased by 15.4 per cent, iron and steel by 26.5 per cent, and transport vehicles and their parts by 6.3 per cent in the first four months of the current fiscal year. “These account for three of the top four products, alongwith cement, in terms of import value,” the centre said, adding that overall imports during the first four months decreased by 6.9 per cent.
Due to fall in imports – which the government claims to be its success – customs duty also decreased by R 2.43 billion and import-based value-added tax (VAT) mobilisation also dropped by Rs 3.94 billion. The heavy slump in average growth rate in revenue mobilisation will be a serious cause for concern as it will force the finance minister to down size the budget alongwith revenue mobilisation target like in the last fiscal year. Despite massive imports in the last fiscal year, finance minister Dr Yuba Raj Khatiwada faced a revenue shortfall of Rs 114.34 billion.
Apart from government failing to meet revenue mobilisation target, the reduced imports of construction materials and equipment also suggest that the economy is not performing well as the construction – that can create not only employment but also help capital formation in future – is slowing down.
The slowdown will lead to a vicious cycle of undergrowth, according to the economists. The government has projected 8.5 per cent economic growth in the current fiscal year but economists claim that the shrinking economic activities – also due to government policy failure – will bring the economic growth down. The World Bank has projected a more modest growth rate of 6.4 percent, though other development partners have also projected the growth rate to be around 5 per cent to 6 per cent.
However, revenue secretary Sishir Kumar Dhungana claimed that the reduced imports will ultimately help reduce the ballooning trade deficit. “The government is focusing on boosting domestic revenue and controlling leakages in customs-based revenue,” he said, adding that the government is focusing on increasing non-tax revenue including royalty, rent, property income, dividends, sales of goods and services, and administrative fees.
Dhungana, however, claimed that the fall in revenue mobilisation has not hit the government’s capacity to finance development projects. “There has not been much pressure on the government due to slow spending of grants provided to provincial and local governments and low expenditure in post-earthquake reconstruction.”

Government spends only 6 per cent of capital expenditure

The government failed to expedite the capital budget expenditure and spent only 6.05 per cent of the total budget – in the first four months of the current fiscal year – despite need of huge cost for the federal structure to sustain.
Of the total Rs 408 billion capital budget for the current fiscal year, the government has spent only Rs 24.71 billion from mid-July to mid-November, according to Financial Comptroller General Office (FCGO).
The government bodies are usually busy devising plans and preparing for developing procurement procedures during the initial days of every fiscal year but decreasing spending capacity of the government, age-old bureaucracy and corrupt governance contributed to the low spending of the capital budget.
In the last fiscal year too, the government failed to spend, as it was able to spend 73.4 per cent of the total development budget. “The low spending in the first trimester will put the government under tremendous pressure this fiscal year too,” according to an official in the Finance Ministry. The last minute spending in the development works means only to meet the spending target but the quality of the work is always under question.
Last year, the government had spent only 35 per cent of the total capital budget of Rs 313.99 billion, while 16.4 per cent of the budget was spent in the last one week alone raising the question of the quality of the work.
The 56th annual report of the FCGO also showed that the government had spent 40 per cent of the total capital budget of Rs 108 billion in the last month of the fiscal year 2017-18. The last month and last week spending is, though financial crime, the two-third majority powerful and stable government of Prime Minister KP Sharma Oli has failed to boost the spending let alone meet the revenue mobilisation target.
The Constitution mandates a government to bring the budget before one-and-a-half months in advance, which will help approve the budget from the parliament before the fiscal year begins. But the constitutional provision also failed to expedite the capital expenditure.
Though, the finance minister Dr Yuba Raj Khatiwada has been defending the worst performance saying that the government’s focus has been diverted to the other actions, the failure is also attributed to the lack of preparations of the projects before budgeting. The government has brought Rs 1.53 trillion budget for the current fiscal year 2019-20. “Of the total Rs 957 billion recurrent budget, the government has spent 20.57 per cent in the four months of the current fiscal year,” according to the FCGO.

Former finance minister Rana no more

Senior economist and former finance minister Madhukar SJB Rana passed away today at the age of 78.
Rana breathed his last while undergoing treatment at Nepal Mediciti Hospital, according to his family sources. Rana was suffering from heart disease and had undergone by-pass surgery twice.
Born in 1941, Rana served as a professor at the Asian Institute of Management and was popular as ‘development economist’ at his time. He was the finance minister during the regime of former king Gyanendra Shah. Rana, who had widely contributed in the academic and management sectors, was an intellectual economist.
“Saddened at the news of the demise of Madhukar Rana, a noted economist, who also served as finance minister. Wish his soul rest in peace and heartfelt condolence to the family,” tweeted former finance minister Ram Sharan Mahat.
Likewise, former finance minister Dr Prakash Chandra Lohani, also tweeted, “Madhukar Rana is no longer with us. This is sad news.”
“We have been friends for the last forty five years and and worked together at CEDA when it was first established,” Lohani further tweeted. “We then worked together in the government as well as the academia. Madhukar ji was a gentleman and a scholar always full of new concepts and ideas in economics, management and regional economic cooperation. He was one of the founders of the South Asian Institute of Management and his dream was to see it evolve as a new university in the country focussing on IT and business administration. My heart felt condolence to Greta and the family. May his soul rest in Peace.”
Rana is survived by a wife and two sons.

VCTS to be fully implemented next fiscal only

The government and traders have reached an understanding to implement the vehicle and consignment tracking system (VCTS) in a full-fledged manner only from next fiscal year.
“The understanding has been reached – on the request of traders – to implement VCTS on a voluntary basis in the current fiscal year,” confirmed an official at the Finance Ministry.
A meeting between traders and Finance Ministry officials have agreed to implement the VCTS on a voluntary basis in the current fiscal year and make it mandatory – in goods trading – from the beginning of next fiscal year 2020-21, according to the Finance Ministry.
They also have agreed to form a committee to look into the effectiveness of VCTS in the current fiscal year. “The committee will study on ways to effectively implement the VCTS and practical challenges that could arise during implementation of the system,” informed the Finance Ministry that had implemented the web-based VCTS on July 17, to keep track of the cargo ferrying containers and trucks.
The government has implemented the digital tracking system primarily to control revenue leakages as the government can easily trace vehicular and cargo movements and transportation of goods through VCTS but could not make it mandatory in the current fiscal year as it had not done extensive discussions with the private sector before implementing it.
Though more than 30,000 traders and firms have registered themselves under the VCTS, more traders are against the abrupt implementation of the system citing difficulty in implementing it due to the difficult geography of the country and technical problems related to internet service. Some of the entrepreneurs have also protested claiming the abrupt implementation of the VCTS is ‘impractical.’
In response, the government has been flexibility in making the VCTS mandatory for traders.
However, over 10,000 consignments are being registered in the VCTS every day nowadays despite initial opposition from the private sector, according to the Department of Revenue Investigation (DRI).
After the VCTS will be mandatory, traders will be liable to fines of up to Rs 50,000 for the first time and Rs 75,000 for the second time, if they do not abide by the VCTS rules.

Stock market drops four months low

The share market has continued its losing streak and closed at a four-month low of 1,178.46 points – shedding 12.61 points on a day – today due to government's failure to implement policies.
Earlier, the market dropped to 1,181.09 points on April 9.
The stock market has also been affected by a shortage of loanable funds with banks and high interest rates, the experts claim.
However, share market plunged today after finance minister Dr Yuba Raj Khatiwada said that the government could intervene in the share market, a stock broker said, adding that the finance minister’s today’s statement has disheartened the market. “The finance minister’s statement has come in a time, when investor confidence has started growing.”
Speaking at a programme here today, finance minister said that the ministry could step in, if market regulators were reluctant to regulate the stock market. “The government is more concerned with achieving higher economic growth than boosting the stock market index,” he said, adding that the government, however, seeks to strengthen the capital market.
The Nepal Stock Exchange (Nepse) index has lost 90 points in the last five weeks, and wiped out around Rs 84.48 billion from the book value of stocks held by investors, whereas market capitalisation has also gone down to Rs 1,496.71 billion from Rs 1,581.19 billion.
Though, the Nepse index hit an all-time high of 1,881.45 points – with a record Rs 1,981 billion market capitalisation and a record Rs 2.75 billion daily turnover – on July 27, 2016, the continuous slump in the secondary market has pulled down the current daily turnover to hover around Rs300 million.
“Indecision over the calculation of capital gains tax (CGT), delays in the enforcement of proposed brokerage licences to banks, government’s stern tax policy and delays in the implementation of margin trading contributed to bring down the share market,” the brokers claim, adding that the share market regulator – Securities Board of Nepal (Sebon) – is, though, making all efforts to enforce good governance in the secondary market. “The government’s apathy towards addressing the problems in the stock exchange had taken a toll on the market.”

Government commits to strengthening custom, border administrations

The government has reiterated its commitment to strengthen and make customs and border administrations effective.
Addressing a seminar 'custom management' organised by Department of Customs (DoC), here today, Finance Minister Dr Yuba Raj Khatiwada said that the government is developing technology and infrastructure in every customs office, and also ring legal and structural changes to boost entrepreneurship and economy.
Urging the private sector to contribute to the building of national capital, he also said that public-private partnership is needed to expedite industrialisation. “The private sector should boost industries and entrepreneurship by investing in protected areas,” he said, asking the concerned authorities to do their best in controlling smuggling activities.
On the occasion, finance secretary Rajan Khanal said that the government has brought a policy to develop a transaction-based custom service, whereas director-general of the department Rameshwor Dangal informed that a total of 24 custom offices across the country had been developed as operating transaction banking.

Finance ministry promotes financial indiscipline, transfers Rs 85 million

Shifting financial resources from another heading for foreign junkets could undermine financial discipline but the Finance Ministry has transferred Rs 84.51 million from 'miscellaneous' heading to 'delegation, foreign visit and reception' heading to finance foreign junkets of top-ranking officials in the past two months alone.
According to the ministry data, it transferred Rs 84.51 million in Baisakh – from mid-April to mid-May – and Jestha – from mid-May to mid-June – from the 'miscellaneous' heading to 'delegation, foreign visit and reception' heading to finance high profile visits to various countries, breaching the financial discipline.
Though, law permits budget transfer of only 10 per cent for each ministry and agencies within the ministry, the transfer of millions of budget to finance junkets of officials has raised serious questions on the government's commitment for financial austerity and fiscal discipline.
Out of the total transfer for financing foreign junkets, the finance ministry has provided Rs 21.29 million to pay for Prime Minister KP Sharma Oli's state visit to Vietnam and Cambodia. Likewise, the ministry has released Rs 30.96 million to the Foreign Ministry for expenses incurred during the official visit of President Bidya Devi Bhandari to China in the last week of April. The ministry also provided Rs 16.21 million to finance President Bhandari-led delegation to the US to attend the 63rd Session of the Commission of the Status of Women by the United Nations in March. The Finance Ministry has transferred Rs 5.38 million to provide daily allowance and pay travel agency for air tickets issued to delegates to participate in various international programmes.
The ministry has also released Rs 1.52 million to Nepal Law Commission to finance its three-member delegation – led by chairperson Madhav Paudel – to Zambia to participate in a conference of Commonwealth Association of Law Reform Agencies, Rs 1.36 million to pay for visits of chief secretary-led delegation to Egypt and Israel, Rs 704,273 for forest Minister-led team to Doha, Rs 955,245 for deputy prime minister and defence minister to New York for 2019 UN Peacekeeping Defence Ministerial Meeting and Rs 838,908 for industry minister Matrika Yadav to Dubai and Bahrain.
Likewise, the ministry has transferred Rs 1.39 million to finance trips of law secretary to UN Headquarters in New York, Rs 1.87 million to finance foreign minister visit to Argentina, Rs 648,191 to finance sports minister’s visit to the US, and Rs 851,350 to finance National Information Commission's commissioners' visit to South Africa.

Government presents 1.53 trillion deficit budget

Finance Minister Dr Yuvaraj Khatiwada today presented Rs 1.53 trillion deficit budget – targeting to achieve 8.5 per cent economic growth, and containing inflation under six per cent – for the next fiscal year 2019-20 in the Federal Parliament.
Presenting the federal budget in the joint session of the House, Dr Khatiwada said that the government has increased the total budget size to Rs 1.53 trillion – some 17 per cent bigger – for next fiscal year from Rs 1.31 trillion in the current fiscal year. "The capital budget has also increased from Rs 313.99 billion to Rs 408.59 billion."
The government has earmarked Rs 408.59 billion (26.6 per cent) for capital expenditure and Rs 167.85 billion (11 per cent) for financing provision, he said, adding that the government will mobilise Rs 981.13 billion from revenue, Rs 57.99 billion from foreign grants, Rs 298.83 billion from foreign loan and Rs 195 billion from domestic borrowing.
Though, finance minister – presenting his second budget in the row – claimed that the government has planned to achieve 8.5 per cent economic growth on the base of infrastructure development, the capital budget – aimed at expediting the development activities – seems completely dependent on the foreign aid and grants, as he has allocated Rs 957.1 billion under recurrent expenditure and projected to mobilise Rs 981.13 billion in revenue. The projection of revenue could meet only the recurrent expenditure, if he is able to meet the target, but going by the current fiscal year’s trend, the government has failed to meet both the revenue mobilisation – because of disappointing mobilisation of VAT, customs, excise and income tax (both corporate and personal) and also spending target.
The government has, however, revised the tax structure claiming to make it more sustainable source generated through internal economic activities rather than existing import-based revenues.
But the minimum income tax threshold for individuals has been raised to Rs 400,000 per annum and Rs 450,000 for married couples – though they will have to pay 1 per cent social security tax – from Rs 350,000 for single and Rs 400,000 for married couples. It is expected to give some relief for the working class people.
With an ambitious economic growth target but few tangible bases, the budget has also focused on increasing cash-based social security allowances – as promised in the election manifesto – salary hike for the government employees – the regular process every 2 -year – and hefty amount for the parliamentarians – the most opposed dole out that is the wastage of public money – even after the election of local governments.
Bowing to the political pressure, finance minister allocated fund for Parliamentarians. But in the past parliamentarians were allocated budget as there was no local government for two decades but the budget allocation for them now will encourage gross financial indiscipline. The fund – named Local Infrastructure Development Partnership Programme – has been increased by 50 per cent – from Rs 40 million to Rs 60 million, he said, adding that the salaries of non-gazetted officers have also been hiked by 20 per cent and those of gazetted officers by 18 per cent. “The budget has earmarked Rs 64.50 billion for the social security scheme, under which the monthly allowance for the elderly has been increased by Rs 1,000 to Rs 3,000.”
The scheme is expected to benefit around 1.3 million people above the age of 70, he added. “Likewise, allowances for widows and single women have been increased to Rs 2,000 from Rs 1,000.”
The budget has also allocated Rs 220 million to provide air transport facilities for pregnant women and has further promised to provide access to clean drinking water to 92 percent of the population by the next fiscal year.
“Overall development is only possible through high economic growth and its equitable distribution,” Dr Khatiwada said, adding, “Our socialist goal is to fulfill the basic needs, such as employment, food security, basic health and education services, and clean drinking water, for all citizens.”
He said that the budget has also focused on social justice, increment in exports to reduce the trade deficit, and increase in general productivity, apart from completing incomplete projects. Khatiwada has also allocated budget for education, health, science and technology, agriculture, drinking water and hygiene, social security, employment tourism, industry, commerce and supplies, energy, transportation, urban development, presenting the rosy picture of the economy, which seems not in track.
“The budget expects hydroelectricity capacity to be double and manufacturing activities may improve on the back of a stable and adequate supply of electricity,” he said. “The budget has promised that 1,000 MW of electricity will be added to the national grid in the next fiscal year, along with a new, ambitious project to generate 3,500 MW of electricity from a combined 18 projects by raising funds from the public under the slogan ‘Nepal ko pani, Janta ko lagani’.” But the programme ‘Nepal ko pani, Janta ko lagani’ has been blamed to be a step to governtisation of private hydro power projects, according to the independent power producers.
The budget has also continued the Prime Minister’s Employment Programme with an allocation of Rs 5 billion. The budget also revitalised the old programme ‘Afno Gaun, Afai Banau’ – let’s build our villages ourselves – that was first introduced some 25 years ago in 1994 by the late leader Bharat Mohan Adhikari.
The budget has allocated the largest chunk to the education sector, which gets Rs 163.76 billion, followed by roads, infrastructure and railway transportation at Rs 163.52 billion as the budget for Upper Tamakoshi, Budhi Gandaki and Budi Ganga hydroelectric projects;  Rani-Jamara-Kulariya and Bheri Babai irrigation projects; Nijgadh, Bhairahawa and Pokhara international airports; Kathmandu-Tarai expressway; Postal and Mid-Hill highways; and the East-West Electric Railway Line have been allocated for their completion.
Dr Khatiwada has also allocated Rs 141 billion for post-earthquake reconstruction, Rs 83.49 billion for the energy sector, Rs 68.78 billion for health, Rs 40.73 billion for urban infrastructure and housing, Rs 34.80 billion for the agricultural sector, and Rs23.63 billion for irrigation.
The budget has allocated Rs 8 billion for the Prime Minister’s Agriculture Modernisation Project – started by the earlier Prime Minister Puspa Kamal Dahal ‘Prachanda’ – and increased state subsidies on chemical fertilisers by 50 per cent to Rs 9 billion. Similarly, he has allocated Rs 950 million for subsidies to encourage sugarcane farmers. The government has also announced the enforcement of anti-dumping tariffs for imports on agriculture products.
The budget has announced raising Re 1 from every litre of petrol and diesel as infrastructure tax to finance road projects. Currently, the government has been levying infrastructure tax of Rs 5 from each litre of fuel to fund to the construction of Budhigandaki Hydropower project. Around Rs 30 billion has been raised for the hydel project but remained largely unutilised, and the government has been in dilemma on who is going to construct the much-controversial Budhigandagi Hydropower project.

Urge to focus on quality of audits to improve trust

Accountancy professionals urged the accountants to improve the quality of audit for enhancing public trust on audit reports issued by them.
Speaking at a session on ‘Enhancing Quality of the Audit to Meet Expectations of Stakeholders’ during a day long ‘Conference on Accounting Profession and Way
Forward' – organised by the Institute of Chartered Accountants of Nepal (ICAN) – in Kathmandu today, they said that chartered accountants should conduct audit of corporate and public enterprises in accordance with auditing standards prescribed by the regulators.
ICAN – an autonomous body to regulate chartered accountancy in Nepal – has organised the conference on the occasion of its 22nd anniversary.
Experts and practitioners, on the occasion, presented and commented on technical papers in four sessions during the conference, where they discussed on Blockchain and Financial Market, Corporate Governance Reporting and Role of Professional Accountants, Experience in Implementation of Nepal Financial Reporting Standards in Nepal.
Over 250 participants, including ICAN members, government officials, corporate executives, regulators and chartered accountants, participated in the conference, where finance minister Dr Yuba Raj Khatiwada also addressed. 

Nepal, World Bank sign two agreements to enhance connectivity and human capital

Nepal and the World Bank today signed two agreements totaling $155.7 million to be invested in the construction and maintenance of safe, resilient and cost-effective bridges in the country, and in improving food security of vulnerable households and communities in the country.
“With these two projects, the government and World Bank will come together to ensure better livelihoods, access, trade and life opportunities for thousands of Nepalis,” said finance minister Dr Yuba Raj Khatiwada. "The first credit of $133 million will be instrumental in ensuring the well-being of the Strategic Roads Network, comprising of roughly 12,142 km of national highways, feeder roads and other roads of national importance," he said, adding that the second project will be in the form of a grant of $22.7 million that contributes to the government’s capacity to deliver agriculture extension services at the decentralised levels, and to diversify income opportunities for the rural poor.
The first credit will finance the $133 million Second Bridges Improvement and Maintenance Programme targeting approximately 477 bridges along the country's Strategic Roads Network. It includes maintenance support for approximately 90 bridges and upgrading road safety measures on approximately 180 existing bridges to help reduce accidents, injuries, and fatalities. The programme will also support construction, rehabilitation or replacement of approximately 80 new two-lane bridges and 35 four-lane bridges. In addition, it will help the Department of Roads (DoR) complete construction of 92 bridges that are vital to improving connectivity and access throughout Nepal.
"We are deepening our collaboration with the government through the development and sustainability of key strategic bridges, and through enhancement of food security and nutrition," vice president of World Bank for South Asia Region Hartwig Schafer said, adding that these contribute greatly to Nepal’s development storyline by addressing the need for connectivity, human capital development and shared prosperity.
Under the second agreement, the multi-donor Global Agriculture and Food Security Programme (GAFSP) will provide a $22.7 million grant to support the Food and Nutrition Enhancement Project. The project aims at improving the health and livelihoods of approximately 65,000 direct beneficiaries, of which 65 per cent will target women. It will work with smallholder and marginal farmers to improve nutritional behaviour by linking it with agriculture-related and income-enhancing activities. In addition, farmers from adjacent communities are expected to indirectly benefit through knowledge exchanges and other engagements from project-supported farmers.
The agreements were signed by finance secretary Rajan Khanal and the World Bank country director for Bangladesh, Nepal and Bhutan, Qimiao Fan, in the presence of finance minister Dr Yuba Raj Khatiwada and World Bank vice president for South Asia Region, Hartwig Schafer.

Government orders industrialists to pay sugarcane farmers in 5 days

The government ordered the industrialists to pay the dues of the sugarcane farmers within five days. The government today issued the directive to clear the dues of the sugarcane farmers, after repeated complaints of farmers not being paid their dues from earlier years.
A meeting of the ministers for Finance, Agriculture and Livestock Development, Industry and Supplies, Forests and Environment, and General Administration – along with the secretaries – took the decision to give the industrialists an ultimatum, agriculture minister Chakrapani Khanal informed. The government has also warned the industrialists of punishment, if they failed to clear their dues to the farmers within 5 days, he said, adding that different organisations of sugarcane farmers – yesterday – had warned to take to the streets after their dues were not cleared for long.
According to the recommendation of the Agriculture Ministry, the government had fixed Rs 536.56 for a quintal of sugarcane to the farmers including Rs 65.28 in grant from the government. However, the farmers have not yet received the money even after six months of the decision.
The farmers' claimed that the sugar mills have to pay Rs 2 billion and the government has to pay Rs 1.28 billion in grant to the farmers.
Out of 31 registered sugar mills, some 13 are in operation, which crush sugarcane to produce sugar. The government – on September 17 – had fixed sugar import quota for the current fiscal year at 100,000 tonnes to save domestic industries and help clear them the stock.
While the sugarcane farmers are yet to get their payment, sugar mills have been raising sugar price after the government imposed import restriction. The sugar price has already been raised to Rs 75 from Rs 60 per kg.