Kathmandu : Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel has said that the alliance between the Nepali Congress (NC) and CPN (UML) will not be impacted from the upcoming fiscal year’s budget.
Responding to the queries raised by the lawmakers in the House of Representatives (HoR) on Monday, Finance Minister Paudel said the two-party alliance will not be affected despite attempts to distance the NC and UML over the issue of the upcoming fiscal year’s budget. “I urge (opponents) not to make such futile attempts,” Paudel stated.
He rather suggested those engaged in such futile works to devote their time and energy for constructive works instead. The Finance Minister also argued that the erstwhile government was responsible for deteriorating economic condition of the country and added that the wrong policies of the erstwhile government cannot be continued this time.
Similarly, Finance Minister Paudel stated that the past government was responsible for Nepal’s position in the grey list of the financial action task force in its anti-money laundering frameworks. “The country should be taken out from the grey list. Strategies and plan of actions have been formulated for this attempt,” Paudel said arguing that the budget has such provisions.
Likewise, he argued that the investigations and prosecution initiatives against money laundering will be made effective. In regards to the budget, Minister Paudel reiterated that the upcoming fiscal year’s budget was implementable and realistic both in terms of revenue collection and expenses adding that the test of budget would be during the phase of its implementation. “The estimates on revenue mobilization, international assistance and internal loan have been made realistic,” he claimed.
On revenue collection, Minister Paudel stated that 17 per cent growth in target of revenue collection would be met by controlling revenue leakage, expanding scope of tax and ensuring efficient tax administration. Saying that though the risks of higher debts are there, Minister Paudel stated that estimates of the internal and external loans were done on the basis of recommendations of the Natural Resources and Fiscal Commission.
Regarding the criticisms about Take and Pay provision on power purchase agreement (PPA), Minister Paudel shared that the provision was included to pave the way for power trade for the private sector too since the sector can sell the energy and the Nepal Electricity Authority (NEA) could buy it on the basis of demand and supply. He added that the provision was aimed at promoting investment in power production, transmission and distributions while encouraging the private sector in the hydropower sector.
On social security schemes, Paudel claimed that the upcoming FY’s budget has taken the policy to integrate different schemes of the social security. He added that resource management, investment modality finalization and project advancement for the Budhigandaki Hydropower Project was ensured in the budget while funds have been allocated for land acquisition to advance the Dudhkoshi Reservoir-based Hydroelectricity Project.
Similarly, study of the troubled industries and the Chure conservation are also the priorities of the government, he added. Stating that the federal government was clear not to implement small-sized projects, Finance Minister Paudel claimed that the upcoming fiscal year’s budget would not implement projects with funds less than Rs 30 million.
