Kathmandu: Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel has assured that the alliance between the Nepali Congress (NC) and CPN (UML) will remain unaffected by the upcoming fiscal year’s budget discussions. Responding to questions from lawmakers in the House of Representatives, Finance Minister Paudel emphasized that efforts to create a rift between the two parties over the budget issue would not succeed. He encouraged those attempting to sow discord to instead focus on constructive activities.
According to National News Agency Nepal, Finance Minister Paudel attributed the country’s deteriorating economic condition to the policies of the previous government. He stated that these flawed policies will not be continued under the current administration. Furthermore, he pointed to the past government’s responsibility for Nepal’s inclusion in the grey list of the Financial Action Task Force regarding anti-money laundering frameworks. Paudel highlighted that strategies and plans have been formulated to remove the country from this list and that the budget includes provisions to enhance investigations and prosecutions related to money laundering.
Minister Paudel also declared the upcoming fiscal year’s budget as both implementable and realistic concerning revenue collection and expenditure. He emphasized that the true test of the budget will occur during its implementation phase. He projected a 17 percent growth in revenue collection, which he plans to achieve by addressing revenue leakage, broadening the tax base, and ensuring efficient tax administration.
Addressing concerns about rising debt levels, Paudel explained that internal and external loan estimates were based on recommendations from the Natural Resources and Fiscal Commission. On the issue of power purchase agreements, he defended the inclusion of the “Take and Pay” provision, designed to encourage private sector participation in power trade and investment in the hydropower sector.
Regarding social security, Paudel noted that the budget aims to integrate various social security schemes. Additionally, it includes resource management and investment plans for the Budhigandaki Hydropower Project and funds for land acquisition to advance the Dudhkoshi Reservoir-based Hydroelectricity Project. The budget also prioritizes studying troubled industries and conserving the Chure region.
In closing, Finance Minister Paudel clarified that the federal government is committed to not implementing small-sized projects, specifying that projects with funding below Rs 30 million will not be pursued in the upcoming fiscal year’s budget.