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Budget 2005-06
FAQs
1. Will the targeted Rs. 37 billion capital expenditure be really spent when the amount spent in 2004-05 was only Rs. 25 billion and in 2003-04 (revised estimate) only Rs. 23 billion (actual)? Has the government's capacity to spend increased so drastically?
2. Will the current expenditure be really contained within Rs. 75 billion as budgeted? For example, will the defence budget be really contained within Rs. 18.7 billion?
3. Will the revenue collection really be Rs. 81.8 billion as expected while it was only Rs. 71 billion in 2004-05 (revised estimate) and Rs. 62 billion in 2003-04 (actual) and now the trend indicates a gradual decline in imports (thus less import duty), slowdown in industrial production (thus less corporate tax) and slowdown in tourism?
4. Will the government really receive the targeted Rs. 33 billion as foreign assistance (Rs. 18.6 b as grants + Rs.14.5 b as loans) while the donors have not changed their earlier announcements of suspending various types of assistance and immediately after the budget announcement the Norwegian government announced suspension of its aid to the Melamchi project?
5. Will the inflation be really curtailed within 4.9 percent as forecast when the budget deficit to be met from internal borrowing is over 10 percent of the total budget and pressure on the price front is ever growing due to the looming threat of a further hike in petroleum prices in view of the increasing oil prices in the world market?
6. Will the foreign investors be ready to invest in Nepal as expected while opening a number of sectors for foreign investment when over 15 percent of the government's budget and nearly 4 percent of the projected GDP is allocated to defence? Will not such a high defence budget in itself be a factor to warn prospective investors?
7. Will the amendments planned in the labour laws be completed within the year and will the amended provisions really encourage the private sector to employ more labour?
8. Will the provisions of the budget 2005-06 really enable the companies to increase their sales in areas where they were not able to sell in the past due to problems in access, for example road blockades?
9. Will the good companies really be attracted to list themselves in the stock exchange for the 2 percent point rebate on the corporate income tax?
10. Will the work in the big infrastructure projects, such as Melamchi, Mid-Marshyangdi etc. resume and carry on without interruption and will the work really start in the proposed new projects such as SEZ, North-South roads etc.?
11. Will the revenue inspectors not misuse the additional discretionary powers such as to raid the premises of the taxpayers and to detain taxpayers at their will?
If the answer to all the above questions is "yes", the Minister of Finance Madhukar SJB Rana has really presented a budget that will revive the economy and thereby the living standard of the people.
If the answer is "no", May Lord Pashupatinath and Lord Buddha Help Us All ! That is what the Minister said at the end of his budget announcement.
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