Kathmandu: Nepali Congress lawmaker and former Finance Minister Dr Prakash Sharan Mahat has emphasized the necessity of fiscal discipline in the budget during the general discussions on the Annual Estimates of Revenue and Expenditures for the fiscal year 2025-26 in the House of Representatives. He described the new budget as relatively balanced, meeting the required discipline criteria.
According to National News Agency Nepal, Dr Mahat highlighted that the budget includes a provision to avoid proposing projects costing less than Rs 30 million at the federal level, stressing the importance of adhering to this practice. Although projects below this threshold are still included, he indicated that they will be phased out gradually. He also argued that the budget has the potential to drive economic growth through government investment and underscored the importance of focusing on projects capable of delivering tangible results.
Dr Mahat pointed out the tourism potential of Nepal, emphasizing the need to identify significant tourist sites and connect them with all-season roads. He also emphasized the need for the planned development of infrastructure, including hospitality services. He expressed concerns about achieving the budget’s proposed sources, noting that internal borrowing from the financial and banking system has been suggested, and stressed the importance of managing interest payments with resources equivalent to capital expenditure.
He insisted on maintaining budget discipline at the provincial level, suggesting that small projects should be funded through budget allocations to prevent fund misuse. He also recommended that only projects above Rs 10 million should be implemented in the province through mandatory contracts. Dr Mahat criticized the Rastriya Swatantra Party for raising baseless issues and missing key discussions on the budget, as all parties, including the main opposition, participated in the talks.
Dr Mahat expressed confidence that the budget would promote economic prosperity, create opportunities, and generate employment. He emphasized the need to focus on mobilizing state resources, managing capital expenditure, and meeting revenue mobilization targets. He also noted that the revenue estimation of the proposed Rs 1964 billion budget is not as expected and highlighted challenges in receiving foreign aid and loans.