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- Senate meet of Mid-Western University approves annual budget of Rs. 1.04 billion
- PAC forms sub-committee to study dues of NEA dedicated line users
- NCP finalises district commitee in-charges and joint in-charges
- Vice President attends Egypt's National Day reception
‘Budget should not exceed Rs 1,500b ceiling’
By Laxman Kafle
Kathmandu, May 17: Economists have said that the new budget should be practical and realistic with special focus on its implementation framework as the budget implementation is more important than increasing its size by including ambitious programmes.
They said that the government should introduce budget not exceeding budget ceiling of Rs. 1,500 billion given by the National Planning Commission (NPC).
Economist and Former Vice-chairman of NPC Dr. Shankar Sharma said that the new budget should not exceed the budget ceiling fixed by the NPC.
“It will be good to introduce the budget in line with the NPC’s budget ceiling because it will support the government to include readiness projects instead of allocating budget to the unprepared projects,” he said.
The size of the budget has been widening for the last two/three years, but has not been spent properly, he said, adding that the government should introduce budget which could be implemented properly and help achieve the targeted growth.
The present issues of increasing the social security allowance and salaries of the civil servants would create pressure on the budget size, but it should not be 5 per cent bigger than the NPC ceiling, Dr. Sharma told The Rising Nepal.
“Major thing is to remove unnecessary and sick projects by screening them and allocate required budget to the priority projects. Resources can be managed for the priority projects if we stop allocating budget for the unnecessary and sick projects,” he said. It will not be good to introduce a huge budget focusing only on revenue
collection, he said, adding that import-based revenue increment would not be good for the nation and it would not be
certain to increase revenue collection in the days to come.
The growth rate of the government investment has declined this year which showed that the revenue collection increased, but the investment declined. “The government should introduce realistic, manageable and spendable budget instead of ambitious and big budget,” said economist and NPC’s former vice-chairman Dr. Swarnim Wagle.
The size of the budget should be realistic based on the availability of foreign grant and loan, internal borrowing and domestic revenue, he said, adding that the bigger budget would bring the distortion to the national economy. “The budget cannot be effective if it is not implemented properly even if we unveiled bigger budget. So, the budget should focus on its implementation part,” he said.
Economist and former member of NPC Dr. Chandra Mani Adhikari said that the new budget should focus on accelerating economic activities, increasing domestic productivity, employment generation that help achieve higher economic growth. “Analysing the present budget spending capacity of the government and resources, the size of budget should be between Rs. 1,400 to Rs. 1,500 billion which will be appropriate,” he said.
He said that the there is no short of resources to bring a budget of Rs. 1,500 billion in the next fiscal year. But the budget should focus on implementation part which has become challenging for the past few years, he said. He said that the government should focus on enhancing resources efficiency and spending capacity of the concerned bodies to achieve the sustainable economic growth.