Kathmandu: The annual policy and program for the fiscal year 2023/24 has been presented at the parliament with a focus on the economic reforms of the country.
Presenting the annual policy and program at the joint meeting of the federal parliament, President Ramchandra Paudel said the government has a goal to gradually improve the economy.
“Reduction in the overall demand of economy coupled with shrinking liquidity, higher interest rate, price inflation, low capital expenditure, weak revenue mobilization and pressure in the external sector would be gradually addressed”, President Paudel said while presenting the annual policy and program.
The annual policy and program lay emphasis on the participation of the private sector for economic expansion, efficient revenue administration, effective capital spending, and reduction in public spending.
The government’s policy and program has further emphasized making the national income judicious and developing the private sector as the key partner of economic development.
“The country would be made economically strong by enhancing production and productivity and expanding employment opportunities through the collaboration of government and private sector. The foreign investment would be mobilized in priority areas”, the annual policy and program stated.
The annual policy and program has been introduced with a plan to take some crucial action for reforms in tax system when the collection of public revenue was fairly low this time around.
“The revenue administration would be made further effective and efficient. The existing tax system would be reviewed. The tax net would be expanded.
All kinds of economic activities would be integrated into a formal system. Revenue leakage, low invoicing, hundi, investment in illegal transactions and national capital flight would be brought under control”, the policy and program further emphasized.
The government policy and program has also accorded priority to make the annual budget spending system effective and well-managed. The government has put forth a plan to increase capital spending and reduce public expenditure.
“Allocation and implementation efficiency of public spending would be improved. Budget formulation to the implementation process of all three tiers of the government would be reviewed”, President Paudel said.
“Allocation accountability would be strictly enforced; economic administration would be made transparent, result-oriented and information technology friendly”, the annual policy and program noted.
The public procurement process would be made further transparent and well-managed through the Public Procurement Monitoring Office, the policy and program stated, adding legal provisions of the Public Procurement Monitoring Act would be amended.
The e-procurement would be made mandatory as per the government plan. The government has laid focus on making fiscal federalism effective. Fiscal transfers would be made based on the need of the expenditure and revenue capacity and would be linked with performance.
The annual policy and program has also touched upon the problems faced by banks and financial institutions of late. “Banks and financial institutions, cooperatives, and the stock market would be made further effective. Depositors of the banks and financial institutions would be protected.
Investment of the financial sector would be centralized in the productive sector. The loan would be mobilized in further productive sectors focusing on disadvantaged groups”, the annual program added. “Effective monitoring and supervision would be placed to manage microfinance. Policy on national cooperative would be amended”.
The government has come up with a policy to bring institutional reforms for the development and reforms of the stock market. “Investment from non-resident Nepali would be made open in the stock market. Youths going abroad for employment would be encouraged to make an investment in public debenture and initial primary offering of the private ventures”, the annual policy and program stated.
