BUDGET 2006
Questions Of Implementation
Even before the budget is announced, questions are being asked on its implementation
By A CORRESPONDENT
A leading economist last week raised some serious questions regarding the budget of the fiscal year 2006/07, which is scheduled to be presented this week.
Economist Dr. Raghab Dhoj Pant, who created a storm four months ago by stating that the economy was on the verge of collapse compelling then government to come out with clarifications, has now called into question budget formulation, approval and implementation procedures.
“This government, as I understand, is a transitory government that is waiting to hand over the power to interim government. So, where does it get the authority to formulate budget for the whole fiscal year in the first place,” asked Dr. Pant. According to him, the current finance minister should only be presenting a transitional budget without going in-depth on programs and projects. “He should only provide broad outline of income and expenditure and leave the rest to the incoming interim government.”
Dr. Pant added that since the eight-point pact between the government and the Maoists state that the former has to take decision on any issue of ‘far-reaching consequence to the nation’ based on consensus, it is important to know whether Maoists have been consulted in the formulation of the budget.
Addressing a press conference, the executive director of Institute for Development Studies (IFDS) Dr. Pant expressed concern over the lack of clarity in the political economic processes in the country. He said there were lack of clarity on who is going to approve the budget and who will own up the responsibility of implementation in current situation of utter confusion and instability.
He said that despite ceasefire in the country, common people were not yet able to benefit from peace dividend.
Meanwhile, Finance Minister is scheduled to present the budget for the fiscal year 2006/07 at the parliament, most probably on July 12. Minister Dr. Mahat has been saying that this time he will give top priority to rural projects, electrification and road construction.
Dr. Mahat knows that he needs to walk tightrope to satisfy demands of various sections of society, especially since public aspirations have soared following the April movement. Maoist leaders have been saying that implementation will be difficult if budget is brought without consultations. Dev Gurung, a member of Maoist talks team, said that if the budget is introduced without consulting with his party and civil society, there will be problems in its implementation. Stating that the Maoists favor total change in the current budget system, Gurung said, “Budget oriented towards poor people and rural areas is the need of the hour.”
Speaking at a program in the capital recently, he urged the government to bring forth short-term programs to provide relief to poor people and hold elections for Constituent Assembly rather than going for big projects. “The current government has the mandate to hold CA elections only. Therefore, it should bring people-oriented and short-term budget,” he said. He urged the government to adopt progressive taxation system. He also called for nationalization of King’s property. “Instead of foreign loan and aid, budget should be based on internal resources.”
It seems practically impossible for Dr. Mahat to be able to satisfy demands of all sections of people. But he may be expecting to meet most of their demands while presenting what country director of World Bank Kenichi Ohashi recently said was going to be the “most important budget in the modern history of Nepal.”
