Lawmakers ask to bring supplementary budget before regular budget

Lawmakers today demanded the government to bring supplementary budget – to mitigate the impact of the coronavirus – before the regular budget for the next fiscal year.
Commenting on the ‘Principals and Priorities of the Budget for the next fiscal year’ – presented by the finance minister Dr Yub Raj Khatiwada at the house yesterday – they asked the government to first bring immediate relief measures, through supplementary budget, as the economy has suffered a lot due to one-and-a-half month lockdown clamped to contain the spread of coronavirus.
The parliamentarians, on the occasion, also demanded the government to prioritise four sectors—employment generation, agriculture, health and the education—in the federal budget for the next fiscal year 2020-21.
They also said that as the coronavirus (Covid-19) pandemic is taking away jobs from thousands of Nepalis within the country and out in different labour destinations, the primary focus of the new budget should be creating jobs. “The government to hold adequate discussions within the House and outside before presenting the budget,” they said, adding that
The finance minister has to present the budget every year on Jesth 15, which falls on May 28 this year.
Dr Khatiwada will present the budget for next fiscal year 2020-21 in the Parliament on May 28, though the budget session has started late due to coronavirus pandemic. The government has escaped the pre-budget discussions, and holding the discussion from today before programmes and Policies to be presented by the president on May 15.
The lawmakers – of almost all the political parties in the House – has a unanimous view that the government should not set ambitious targets and be realistic in its budget focusing on resolving the problems created by the pandemic. The government has as always like in the normal times has targeted to get double digit growth, which it has failed to achieve in the last fiscal year and fiscal year too, and of course seems not possible in the next fiscal year also.
The incumbent government and finance minister – who is going to present the budget for the third year in the row – has repeatedly failed to not only achieve the growth target but also crack whip on inflation, and also create investment friendly environment. “The private sector that has already been under threat from the government and its machinery that have been directly involved in the extortion, has not been able to operate business but the government has ordered to pay the complete salary of last month and thus month too,” said an entrepreneur, who did not wanted to be named due to fear from the finance minister and the incumbent government that does not like to hear criticism. 
The government has failed to pay the salary to government staff, how can private sector – without operating industries – pay salary of the workers for two months without work, he said, adding that they have not been reaping huge profits as assumed by the public. “The government is taking loan from the development partners to pay salary to its staff, and how can the private sector pay salary to its workers without any support.”
On the occasion, Nepali Congress lawmaker Minendra Rijal, also the shadow finance minister, said that thousands of migrant Nepali workers, and also those inside the country, have lost their jobs. “The government must thus focus on creating jobs,” he said, adding that the government also does not have exact data of how many Nepalis are currently employed abroad, though estimates suggest the number could be in millions.
There are over 1.5 million Nepali youths in Malaysia, Qatar, Saudi Arabia, the United Arab Emirates and Kuwait alone, according to the Migration in Nepal report. Likewise, some 3 million to 4 million people are employed in India. “The economic slowdown in these source countries has already hit the job market hard,” he said, adding that some 3,500 Nepali workers have registered to return home from Kuwait. “More unemployed Nepali migrant workers means more drop in remittance inflow, which will lead to decline in the import and affect revenue mobilisation.”
Urging the government to bring a realistic budget, he also said that despite agriculture accounting for one third of the country’s economy, the sector still continues to be neglected.
The lawmakers also demanded to allocate at least 10 per cent of the budget for the agriculture sector from currently 5 per cent that comes to around Rs 1.53 trillion.
The lawmakers also called the government to empower the local governments to help them implement projects more effectively, spend more to upgrade healthcare system, and invest more to develop infrastructure for online studies.

NC’s forms ‘economy-focused special committee’

The main opposition party Nepali Congress (NC) today formed an ‘economy-focused special committee’ to study and analyse the impacts of Covid-19 in various sectors, and prescribe the government immediate, medium and long term solutions.
Issuing a press note today, NC informed that party president Sher Bahadur Deuba formed the committee under the coordination of the former finance minister Dr Ram Sharan Mahat. The committee comprises former finance ministers and state ministers and vice chairs in the National Planning Commission (NPC), the press note reads, adding that the committee includes former finance ministers Mahesh Acharya, Gyanendra Bahadur Karki, Dr Narayan Khadka, Dr Minendra Rijal, Chinkaji Shrestha, Deep Kumar Upadhyay, Bharat Shah, and Uday Shumsher Rana. “Likewise, Dr Prithivi Raj Ligal, Dr Shankar Sharma, Dr Jagadish Chandra Pokhrel, Dr Govinda Pokhrel and Dr Swarnim Wagle are also in the special committee.”
“The party will set its immediate vision and position regarding relief packages, short-term vision on the priorities of the upcoming budget and long vision on national economy post-pandemic,” the press note reads.

Industrialist Golchha passes away

Former president of Federation of Nepalese Chambers of Commerce Industry (FNCCI) and vice chair of Golchha Organisation Diwakar Golchha passed away Tuesday night while undergoing treatment in India. He was 67 and undergoing a kidney transplant in Chennai. He is survived by his two sons.
The Golchha organisation that owns Hulas CGI sheets, Wires, Shree Ram Sugarmill and many more is one of the leading business organisation in Nepal and has contributed to the industrialisation of Nepa. Golchha, also the former vice president of the Federation of Nepalese Chambers of Commerce and Industries (FNCCI), was a parliamentarian in the first Constituent Assembly (CA) in 2008 from Nepali Congress (NC) party. The elder brother of its incumbent first vice-president Shekhar Golchha, Diwakar was elected to the first Constituent Assembly (CA) in 2008 by Nepali Congress (NC) through proportional representation system.
His body will be brought to Kathmandu on Wednesday and will be cremated on Thursday, according to the family.
Meanwhile, Nepali Congress has expressed grief on the passing away of industrialist Golchha. Issuing a press note, the NC said that Golchha's demise is a huge loss to the country's industrial sector. "The country has lost honest and competent industrialist," the NC said in the press note. The party has also paid tribute to the departed soul while expressing condolence to the bereaved family members and relatives.

Private sector mourns death of former PM Koirala

The private sector has expressed grief at the demise of former Prime Minister and Nepali Congress (NC) president Sushil Koirala. Koirala, 77, passed away today morning at his residence. The private sector was stunned by Koirala's sudden demise, they said.
Issuing separate statements, the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Confederation of Nepalese Industries (CNI), Nepal Chamber of Commerce (NCC) and Non-Resident Nepali Association (NRNA) described Koirala's passing away as 'a great loss' to the nation.
According to the president of FNCCI Pashupati Muraraka, the country has suffered an unbearable loss. "Koirala had a significant contribution to the democratic movement with commendable leadership," he said, adding that the private sector will always appreciate his contribution of leading the country through the transition and promulgation of a new Constitution. It was Sushil Koirala, who drivered the promulgation of a new Constitution through the Constituent Assembly, despite a huge pressure from in and out of the country.
The FNCCI also claimed that Koirala was always concerned for the economic development of Nepal. "Now the implementation of the new Constitution and lead the country towards a prosperous future rests on the political parties," the umbrella organisation of the private sector said, adding that Koirala had played a legendary role in the democratic movement and especially in institutionalising democratic republic in the country. “During meetings with the private sector, Koirala used to encourage the private sector to make investments and attract foreign investment as well."
The biggest achievement of Koirala's political career was the promulgation of the Constitution on September 20, 2015. In his capacity as the Prime Minister, Koirala played a crucial role in generating political consensus for the statute’s endorsement despite various pressures.
Under his leadership, the Nepali Congree (NC) re-emerged as the largest party with the highest number of votes. Koirala led the government from February 2014, after the election to the second Constituent Assembly (CA). He was elected as the NC party president in September 2010.
Koirala, when was the premier, used to say that Nepal would embark on a economic development journey and the government’s focus would shift towards economic development once the Constitution was promulgated.
According to CNI, the country lost an honest and simple person with a clean character. "Koirala was a strong supporter of independence, democratic values and liberal economy," it further said, adding that Koirala’s death has not just created a void on the political front but also on the economic front.
The chamber has also lauded Koirala’s role in uniting the political parties for the promulgation of the new Constitution. "The people’s hopes of seeing a new constitution through the Constituent Assembly was fulfilled during his tenure,” according to president of chamber Rajesh Kazi Shrestha.
The supporter of open market and free economy, Koirala firmly believed open market and free economy play a crucial role for country's development and prosperity.
According to the chamber, Koirala always played an inspirational role for the country’s private sector. "Koirala believed that the sustainable development of the country was possible only through an open market, liberal economy and private sector," the NCC said, adding that he always believed the nation will prosper with private sector-led economic growth.
Though, he did not have much knowledge about economics, and was not aware of how it exactly functioned, he was keen on attracting domestic and foreign investments for employment generation and economic development of the country. He also used to say that the country’s resources have to be used properly so that prosperity could be shared.
Going against the tide, he also made some bold decisions like signing power trade deal with India during his 20-month reign from February 2014 to October 2015. Likewise, the signing of two agreements on development of 900MW Upper Karnali and 900MW Arun-3 hydroelectric projects worth over $2 billion was also possible under Koirala's premiership.
Koirala’s government also revived talks on construction of 5,600MW Pancheshwar Multipurpose Project after a hiatus of almost two decades; allowed at least three foreign companies to establish cement plants worth tens of billions of rupees; and lured billions of rupees of investment in the hotel sector. Koirala, however, did not sign any agreement that was against the national interest, despite pressures from within and outside his party.
During his tenure as Prime Minister Nepal's received a record Rs 270.60 billion foreign aid commitments in fiscal year 2014-15. Koirala also supported the process of revising or framing around three dozen policies and Acts to attract foreign investment and protect the interest of investors.
The Koirala government was also hailed by the international community as it was quick in responding the devastating earthquake of April 25 and mobilised the National Planning Commission -- chaired by him -- to conduct Post Disaster Needs Assessment (PDNA). An International Conference on Nepal's Reconstruction (ICNR) on the basis of PDNA helped Nepal receive funding commitment of $4.1 billion for reconstruction and rehabilitation works from the international community.
The international community, including Non-Resident Nepali Association (NRNA) has also mourned the sudden demise of Koirala.
NRNA president Shesh Ghale, in a statement, said that Koirala’s death had stunned the association. "We have lost our parent, who always remained helpful and guided the NRNA in its movement," he is quoted in the statement. "Koirala’s demise has caused an irreparable loss to the nation."

Stock market rally after Koirala elected prime minister

The stock market today reacted positively to the election of Nepali Congress president Sushil Koirala as the new prime minister of the country.

The Nepal Stock Exchange (Nepse) index crossed 800-point mark after almost two months on the election of democrat for the top job of the country.

The Nepse surged by 19.13 points or 2.44 per cent to close the market today at 803.13 points, after Koirala received overwhelming support to lead the new government.

As the uncertainty ended with the election of the prime minister, the index shot up by over three per cent – for the first time – attracting circuit breaker and and four per cent – for the second time – again attracting circuit breaker.

The market confidence also boosted due to liberal government in offing.

The investors started offloading to book the profit as the market started looking up. With the heavy buying and selling of stocks, the Nepse today witnessed some Rs 400.97 million worth transaction in a day.

Koirala elected 37th prime minister of the country

Nepali Congress president Sushil Koirala has been elected as the 37^th prime minister of the country today. He is the fifth prime minister after the country became a republic in 2008.

He secured 405 votes, and some 148 voted against him to be elected as prime minister today after 83 days of the second Constituent Assembly (CA) election.
He was the sole contestant in the premier race.

Nepali Congress, CPN-UML and other parties voted for Koirala, whereas UCPN-Maoist and Madhesh parties voted against him as prime minister.

The election of democratic leader for the top job is expected to expedited halted economic development in the country.

Koirala, a bachelor known for his commitment to democracy, integrity and simple life-style, lives in a rented house in Kathmandu. Inspired by Nepali Congress legendary leader and political ideologue late BP Koirala, he has been associated with the Nepali Congress since 1955.

Born to Bodh Prasad Koirala and Kumudini Devi Koirala in Morang district on August 12, 1939, Koirala joined the democratic movement against the Rana regime when he was merely 14 and spent more than six years in jail in Nepali and India.

His dream to become an actor in Hollywood shattered when the movement against the anarchist regime intensified.

A die hard socialist, Koirala lived in India from 1960 to 1980, and was involved with the socialist movement led by Indian prominent leaders Jaya Prakash Narayan, Ram Manohar Lohiya, Ashok Mehta and Madhu Dandvate.

He was arrested in India after a three-member NC team hijacked a plane in 1973 to fund the anti-Panchayat movement. He returned to Nepal, along with Girija Prasad Koirala, in 1980 after getting amnesty.
He became party’s central committee member on November 28, 1988, and general secretary in the ninth general convention in 1996. He assumed the post of Nepali Congress vice-president in 1998 and elected president in 2010.
He, after being elected to the top executive of the country reiterated his promise to deliver a new statue within a year.

Prolonged political transition hit economic development

Prolonged political transition and experiments have forced Nepal miss economic growth agenda, according to finance minister.

Addressing an interaction on 'Future Economic Roadmap for Federal Nepal,' organised by Confederation of Nepalese Industries (CNI) here today, finance minister Shankar Prasad Koirala said that most of the governments wasted time managing the conflict and missed the chance to develop the country. "Except for a fraction of time – during 1992-1995 after democratic movement – the successive governments since 1940 have been more involved in managing conflict."

The incumbent government has managed the transitional economy and is waiting to handover a healthy economy back to the elected government soon, he added. "Political stability and economic growth is directly related to each other."

Claiming that without investment-friendly environment, only the promises and speeches could not help develop a country, he said that there is no option to agreement on minimum economic agenda on health, education, energy, infrastructure development among the political parties. "After the successful completion of second Constituent Assembly (CA) election, there has been a light at the end of tunnel that the investment-friendly environment is on cards. The elected new government will carry the baton and encourage more investment in the country," Koirala said, claiming that the incumbent government has done some remarkable job to completely end the problem of load-shedding in next three years.
However, former finance minister and Nepali Congress leader Dr Ram Sharan Mahat, on the occasion said that a strong government can change the course of economic development. "The weak government can neither ensure law and order nor fulfil its promises," he said, development is not possible without stopping lawlessness completely. "Skill and policy are more important for the development in the current world than natural resources."
Saying that the flawed thinking among the people that only government is the power, he said that everyone is searching for white-collar job and no one is ready to do blue-collar job. "The table-job has eroded the productivity of labours."
Every finance minister has allocated budget for social security but there is no proper accounts of where the budget has been spent," he added.

Likewise, another former finance minister Surendra Pandey, said that the focus on energy and infrastructure will help create enough employment in the country.
Though I belong to the schooling of revolutionary land reform and distribution of land to poor, I realised that one can distribute only one's property not others," he said, adding that the schooling of distribution was wrong. "The state must be strong enough to implement its policies."
The minimum economic agenda will find no opposers, said another former finance minister and UCPN-Maoist leader Barshaman Pun. "The successive governments failed to kick start economic development, even after political change," he said, adding that his party will support the government on the basis of its performance on economic development and good governance.
Confederation of Nepalese Industries (CNI) president emeritus Binod Chaudhary, on the occasion, blasted the political parties for delay in forming the government. "The political parties have failed to learn the lesion," he said, hailing the incumbent government for helping float the economy smoothly.

Urge to focus on economic agenda

The country can be developed in five years, if the parties can create investment-friendly environment, according to the former finance ministers.

Committing that they would help create investment-friendly environment, they said that they would help promote economic agenda.

"The political parties should now focus on economic discourse," said former finance minister and Nepali Congress leader Dr Ram Sharan Mahat in an interaction here today.

"The parties should focus on economic agenda," he said, adding that the economy has worsened due to bandh, strike and labour trouble. "Nepal will be developed if it can achieve seven per cent economic growth."

However, stable government is key to attract investment that can propel economic growth, he added. "The parties have started new dispute over Constitution amendment, which will distract investors."

If the parties continue to go against the people's mandate, the investors will not find it conducive environment to invest, Mahat said.

Likewise, former finance minister and CPN-UML leader Surndra Pandey, also agreed that there is not much difference in the economic agendas of the political parties. "If the parties unite and focus on economic agenda, the country can be developed in five years," he said, adding that they all agree on economic development but they need to walk the talk.

Another former finance minister and Nepali Congress leader Mahesh Acharya, on the occasion, stressed on the implementation of economic agenda that can help develop the country. "Though there is not much difference – among the parties – in the concept of economic development, their behivour has, however, pushed the economy to backstage," he said.