 |
|
| Kathmandu, Friday July 12, 2002 Ashadh 28, 2059. |
|
Budget
lacks plans for economic revival
Post Report
KATHMANDU, July 11 :
Although the budget for the next fiscal year has analysed the country’s prevailing
scenario excellently, it has failed to announce programmes for propelling the economy to
recovery, viewed experts and former Vice-Chairmen of National Planning Commission (NPC).
"Prioritisation of
objectives laying primary focus on security was important for gaining the investors
confidence and to brew sense of security among commoners. However, the programmes
incorporated to support anti-poverty drive is insufficient and weak," said Prithvi
Raj Ligal, former Vice-Chairman of the NPC.
He viewed that the
government did injustice to the Agricultural Development Bank (ADB/N), which is in dire
need of rescue, by announcing various packages like remission of interests against the
loans from the bank. Also the government neglected the financial system by not announcing
any safety measures to the financial institutions which are facing tough days owing to
bleaker performance of the real sector.
"This could prove
costly in the near future," he said and asked Nepal Rastra Bank (NRB) to take charge
of the matter. Legal further opined that the government has appeared too optimistic in
terms of foreign grant mobilisation and added that a sharp increment in the district level
budget should have been contained at a manageable level.
He warned the
government to be cautious over the probable transfer of the fund from primary to secondary
and tertiary development projects at ministerial level, especially during the election
time, as the finance bill has failed to address it. "This might render the
prioritisation of the projects useless," he added.
He said this while
speaking at an interaction programme on budget for 2002/2003 organised by Nepal
Intellectual Council (NIC) in the capital today.
Ligal also criticised
the government programme of lending the Maoist-hit people through Poverty Alleviation Fund
(PAF). "The PAF is basically the co-ordinating and monitoring body for effective
running of the anti-poverty programmes. Developing it as an implementing agency goes
against its norms and concept."
However, he lauded the
government’s guts of slashing the development expenditure, bringing it at the
feasible level.
On the contrary, Dr
Dilli Raj Khanal, former Member of Parliament, lambasted the government for failing to
address the fundamental issues for curbing terrorism and boosting economy. "The
budget has failed to take into account growing dissatisfaction and marginalisation of the
people, which in turn has been cashed in on by the rebellion," he added.
Even as the budget is
silent on the issues like corruption, governance, financial terrorism, it has incorporated
programmes like foreign employment for 100 thousand people and flexible labour policy
taking election into account, he said. He also rapped the government for remaining silent
on the structural and legal framework of the PAF.
"Decreased
development expenditure along with siphoning off the money from the market and banking
system will worsen the performance of the private sector, as it raises cost of fund. It
will, in turn, worsen the unemployment problem," he stated.
Meanwhile, Dr Raghav
Dhoj Pant declined to comment on the budget stating that the same has been announced
against the constitution, verdict of the Supreme Court (SC) and principle of the rule of
law. "The government did what it should not have done. There is no point to discuss
the good and bad aspect of the budget, if the document itself stands on the false
ground," he said.
Dr Pant was referring
to the constitutional provision, which bars budget presentation out of the joint sitting
of the parliament and the SC’s verdict (1995) which prevents the caretaker
governments from announcing annual budget.
While Dr Mohan Man
Sainju, former Vice Chairman of the NPC said that the budget has failed to incorporate
empowerment of people and social strengthening of the rural poor, Dr Badri Prasad
Shrestha, senior economist, viewed that the future of the budget itself is at stake and
largely depend on the outcome of the election.
In the same vein,
Bharat Mohan Adhikari, a CPN-UML leader, claimed that the government’s reiteration of
the budget as a realistic and reform-oriented was a faulty statement as the regular
expenditure will still cross over the estimated mark and development expenditure will lie
below the mark. "Even the government will fail to mobilise the estimated revenue
owing to the closure and bleaker performance of the manufacturing and trade sector,"
he said.
Other Stories
|
