Kathmandu: The government has unveiled its budget estimates for the upcoming fiscal year 2025/26 in the parliament. The budget, anticipated to introduce reform plans aimed at enhancing the country’s economic condition and accelerating development, has been met with skepticism as it appears to maintain the status quo. This has sparked discourse about its potential impact on economic improvement. In response, RSS correspondent Hemant Joshi engaged in a dialogue with Deputy Prime Minister and Finance Minister Bishnu Prasad Poudel for insights into the budget.
According to National News Agency Nepal, Finance Minister Poudel emphasized that a realistic and disciplined budget has been formulated, focusing on optimal resource and expenditure management. The budget aims to promote investment growth through policy reforms, encouraging both domestic and foreign investments. It also seeks to stimulate production growth and job creation, with increased allocations for capital expenditure and financial transfers to provincial and local levels.
Addressing critiques labeling the budget as average, Minister Poudel stated that necessary steps have been taken to set the right policies without unnecessary interference. He highlighted policy reforms, including alternative development finance and improvements in project management and procurement processes. The initiation of the procurement process ahead of the fiscal year demonstrates a commitment to austerity and spending cuts to balance current expenditure. The tax policy decisions, according to Poudel, have enhanced taxpayers’ trust in the state.
Regarding political pressures, Minister Poudel clarified that budget preparation was guided by realism and discipline rather than political bias. While acknowledging that the budget cannot be entirely detached from politics, he affirmed that it adheres to the fundamental norms of a budget. Despite concerns that the general public’s needs were not prioritized, Poudel asserted that the budget focuses on national priorities, aiming to boost production, economic growth, and infrastructure development, ultimately leading to increased employment opportunities.
In terms of project prioritization, Minister Poudel explained that the budget emphasizes federal responsibilities, with federal projects under Rs. 30 million excluded. The provinces and local levels are encouraged to present their balanced budgets. Immediate implementation of the budget is crucial, and projects with potential for contract issuance within the current fiscal year will be prioritized.