The abattoir controversy

The deal between Kathmandu Municipal Corporation (KMC) and a private party to build a slaughter house has generated controversy. The reason for this is KMC did not take permission from the government before the deal was signed. Detractors of the mayor may have a point here, but the question remains — do all municipalities require to seek permission to award any contract. The government has not answered this question, but there should be no second opinion on this because nowhere in the government initiated decentralisation programme of the administrative system is it mentioned that KMC has no right to award the contract to a private party.

It should also be noted that the Local Self-governance Act of 1998 states municipalities have the right to formulate new policies and initiate development plans without seeking permission from the centre. Article 98, Clause-J clearly points out that KMC has every right to regulate slaughterhouse, cremation ground, public property, development of roads, etc. Hence, the deal to build a slaughterhouse does not come under the central government’s discretionary authority. Neither has it any right to locate such a facility. How can the central government interfere in KMC’s administration, if the Act clearly outlines the power and function of a municipality?

KMC awarded a 15 year contract to a private party to run a slaughterhouse in local Hyumat with the objective of providing clean and hygienic meat to local consumers. This move was no doubt long overdue. However, this does not mean again that civic bosses have the authority to award a contract such as this without studying its impact. For instance, it has built overhead bridges without so much as a second thought. Civic bosses are obliged to confer with the concerned ministry, but in the case of the mayor, this did not happen and so controversy has overtaken the proposed abattoir. Apparently, KMC awarded the contract without responding to a letter that came to them from the Department of Livestock Services. On this count, the mayor was wrong even though he and his advisors may argue
that they have taken the decision with a view to expedite the job, but that only stands as a lame excuse at best.

The project undertaken has drawn further ire on environmental grounds.What this means is that the abattoir in question may find itself in trouble when it comes to disposing the tonnes of waste it is likely to generate. The mayor better answer questions regarding this. Except for these matters, it is a good thing that the mayor has come up with this idea, but he must take care to look into the other problems that may arise as a result of the abattoir.

Forthcoming budget : Some suggestions

-By Surendra Man Pradhan

We, should be very happy that the country has a majority government. This has resulted in political stability, which is most vital for efficiently managing the economy. The country is in a difficult economic situation and the government is facing huge budget deficit. However, there is appropriate opportunity this year to take corrective action in the forthcoming budget. The economy is growing, inflation has remained low at single digit, forex reserves are at the record high level, the government is amenable to reforms, exports are growing. Hence, the government is in a position to direct the economy. It must not cater to the interest of just one single group. This is possible only if the government has the will to act unhampered by political pressures. If harsh measures are necessary to reduce pilferage, to increase revenue collection, control the growth of public expenditure and bring about significant reduction in the budget deficit, then they should be implemented. In order to attain these objectives, we can take several corrective actions in numerous areas. Some of them are mentioned here.

The first area is the budget deficit. The budget deficit can be reduced through both controlling expenditure and accelerating revenue growth. While talking about reducing budget deficit through the mechanism of control of expenditure growth, we can go for two measures which have been unnoticed so far. The first is the substantial pilferage of resources through kickbacks in various forms in case of capital expenditures. Hence, steps should be instantly initiated to block such pilferage if possible, and if not possible to bring it down to some manageable level within a certain time frame in the future. For this purpose, the procedures relating to awarding of contracts and incurring large capital expenditures need to be changed and the system of punishing malpractice should be introduced. The second measure to control the growth of expenditure, is to tap the huge invisible subsidy represented by the overstaffing at ministries and departments. If the size of these institutions could be brought down as per the recommendations forwarded by the Pay Commission, considerable reduction in non- plan revenue expenditure could be achieved. Restructuring ministries and departments is vital. But the spread of decision making power relating to common subjects over many ministries is such that holds up rational and speedy decisions. Similarly, while the privatization programme gathers momentum, autonomy in operation of public enterprises must be practised.

The concept of rolling budget for at least three to four years can also play a positive role in the objective of controlling expenditure growth. This will enable understanding and discussion of plans and projects in their right perspective. It will also remove the Ashadh syndrome when everyone in the government is busy spending money as fast as possible.

Last but not the least, financial discipline is a must to control expenditure growth. Government should limit public borrowing as well as overdrafts from Nepal Rastra Bank, the central bank of Nepal over and above the statutory limit of public borrowing which is based upon mutual agreement between the government and Nepal Rastra Bank.

The generation of revenue also plays a significant role in reducing the budget deficit. If we do not raise resources and instead take recourse to even higher borrowing next year as well, then we will jeopardize our prospects for growth, reignite the flames of inflation, sow the seeds of another balance of payments crisis and place an unfair burden on the next generation. Hence, a mechanism to enhance and accelerate revenue generation must be implemented. But, however, since it is important to have stability in the tax system in the sense that tax changes should be according to a reform plan, the government should have a medium term reform plan which can be implemented over a four or five years. The tax reform policy may contain ideas like widening the tax base and increasing tax revenue, checking tax avoidance techniques, tax rate rationalization and improving tax administration.

There are numerous ways to widen the tax base. The base of import duties can be expanded by removing all exemptions except for a few essential goods like advanced medical equipment and food items. Similarly, several non -tax payers can be brought into the tax net by introducing the system of seeking PAN (Permanent Account Number) while booking air tickets for travel abroad for amounts exceeding certain limit specified by the government, by introducing a system urging notified professionals like accountants, architectural, authorized representatives, engineers, film artistes, legal practitioners, medical professionals, Technical consultants and alike to compulsorily obtain PAN. Besides, it is made compulsory to deduct tax at source in respect of lottery incomes, which are very much prevalent in the present day advertisement markets to promote sales.

Similarly, the ceiling limit for tax-free income needs to be increased significantly in keeping pace with the changed economic situation so as to facilitate taxpayers to register.

Similarly, we can find a lot of cases of tax evasion and avoidance. Hence, the way out for tracing tax evasions and avoidance should also be introduced. In this regard, laws regarding bank secrecy should be modified so that bank records can be used to identify tax evaders and large non tax payers. It is also found occasionally that the practice of showing chargeable income as agricultural income to get exemption from income tax is common. This results in substantial loss of revenue. So, it can also be suggested that the person showing agricultural income in excess of certain specified exemption limit should be required to maintain prescribed books of accounts, which should be audited. Similarly, educational institutions, nursing homes and hospitals involving huge revenue implications should also be required to maintain proper books of accounts and get them audited if they intend to acquire the tax exemption privileges prescribed by prevailing tax laws.

The revenue growth rate can also be accelerated by rationalizing the provisions of tax laws. In this context, the principle of rationalization can be introduced in the tax rates and provisions of different tax laws and provisions prescribed for tax clearance. Action towards tax administration front is also the most important requirement for increasing tax revenues. Tax administrators must be made technically qualified for their jobs and the system must be computerized for efficiency and storing intelligence for better enforcement. Greater transparency and reducing corruption in tax collections are also of utmost significance so that tax payers may get encouraged to pays.

Words unfolding on Mother's Day

-By Rachana Bajracharya

Feeling very funny writing such an open letter to you. But lately I had a realisation that when spoken words fail to express the inner emotions written ones prove worthy.

A few strands of hair have turned gray due to the few insights into the facts of life, due to some knowledge gained, thorns pricked and few worthy lessons learnt.

Nineteen years don’t seem a long time. It seems just the other day I was running around in my pink frock with two little pig tails. A secret to share today, to me you were my one and only Maa, the most beautiful woman in the whole world. You would have been the person I would fall in love with and get married to if I was a guy (but luck favoured daddy!!)

In my eyes, the reason for my existence, the nine months of nourishment in the whom and the care through those sleepless nights when I was sick, the proud smile and a little pat at my back for the accolades in school makes me cry even when I think of them because they touch me so deeply. How can I forget those powerful words of encouragement when I got poor results in the 7th standard.

Years went by and my perception of life became oh-so narrower and limited to my selfish needs and priorities. Friends, parties get-togethers and telephones became important. It became an essential part of life, life at home was just confined to music, telephones and television. There were times when you rarely heard my voice. Fast food suddenly seemed so much more tastier than the daal, bhaat and tarkari which you prepared with so much care. You packed the lovely roti so caringly in a cloth napkin to keep it fresh till lunch break, but I was always embarrassed to take it out in school because it was not just an in- thing. Everything changed. Family dinners were forgotten, outsiders became my best friends. Life was a party of which you were definitely not a part. You did fit but as a mere orthodox previous generation and a big hindrance for my enjoyment of life.

College started with it late night socializing and freak outs. Now you hardly were in the picture. Movies were in, taking pocket money every day was in, of course it hardly mattered how you and daddy earned it. You are supposed to give away. It was considered to be your duty to give. The family dinners which was once upon a time a lovely home affair and sharing the common loaf of bread which gave me sheer joy was conveniently forgotten.

I can still recall the number of times you waited for me in the balcony to come home, not to scream at me but just to ask whether I had anything to eat or not. But now when I think back, it occurs to me that I never asked whether you had anything or not, while waiting for me. Height of selfishness! I cannot believe this was me.

Seasons sure have changed. Life is harsher Maa. I long for your hugs, your gentle pat at my back and your eyes that always glittered whenever you smiled. Maa, sorry for taking you for granted. Today, I know their value because I miss them!!

Few years more, then I am on my own. It’s a nice feeling to be on my own. No Hindrances! Nobody to take account of my pocket money. Nobody to say whom I should be friends with and whom not. But when I think
hard I refuse to live such a life on my own.

Yes ! Life surely have changed perception and priorities too. Like you said once I’d probably appreciate more of life once I went through the same pain and gain... I can say I’ve understood it to some extent and it has led me to appreciate what you and daddy have done. Founded my values, morals, principles and what I’m today.

This piece of note unfolds words and feelings I might have never expressed before. But trust me, I really do mean it. This is the most precious gift a child can give to a dear mother on this day, A message straight from the heart just to tell you I love you, I care and Thank you Maa.

Love and appreciation for all that was and that is, Happy Mother’s Day Forever your demanding daughter.

On school academic calendar

-By Dr Kedar N Shrestha

Changing the academic calendar of schools was the most expensive experiment in terms of the opportunity cost, time cost and actual financial cost.

The change of school session from Poush/Falgun to Shrawan forced about 41 lakh students of primary and secondary schools to waste about five months. About 1,25,000 teachers were paid nearly 4 billion rupees for their forced leisure. The opportunity cost of this change is too difficult to measure. The cost calculation, however, is not being made just to show how prohibitive it was to change the school calendar. The purpose is just to indicate the magnitude of the cost. The question is what is the benefit for the cost. And what are the valid justifications for bearing such a high cost? Those who supported this change of school calendar have argued that such a change would solve the problem of decreasing teaching days in public schools.

Private schools which remain strict and serious of maintain adequate teaching days in school opposed this change of school calendar from the very beginning. They consistently pointed out that such a change would actually reduce the teaching days and add additional inconvenience. After three years, private schools have repeated their opposition to the school session change. In their experience, the new school calendar, in act, has reduced the teaching days and hampered their effort to complete the prescribed course. The government neither listened to their opposition before the session change nor is it prepared to listen to their present opposition that is based on empirical evidences.

Wrong prescription for the disease: The proposal to change the school calendar had originated because of the concern of the government to increase the teaching days in schools. So one can see the urgency to examine the reasons why teaching days are decreasing in public schools. In other words, there is a need to conduct an in-depth study of the problem. Once the reasons of the decreasing teaching days are identified, solutions can be prescribed. No one knows whether any study has been undertaken. People are not informed of the findings of the study. But, they are informed that changing the school calendar is the prescription.

Findings of the diagnosis: In the absence of empirical data based on in-depth studies, the only way was to personal observation. Every one observes that the decreasing school days is not affecting the private schools. It is affecting only public schools. A simple diagnosis on the basics of public school operation will lead to the following conclusions:

i) Public schools are closed down at the simplest pretext.

ii) Teaching does not take place for weeks in the beginning of the session in public schools

iii) Teaching is suspended for quite a few days before the after examination.

These symptoms clearly indicate that behaviour of teachers and headmasters is the main reason for decreasing school days. The government has a corps of school inspectors in each district to enforce government regulations. It is amazing that these inspectors have not penalized teachers and headmasters for unauthorized closure of schools.

Decreasing teaching days in public schools is due to the inefficiency of educational managers such as headmasters, school inspectors and District Education Officers. Their negligence of duty is the root cause. The decreasing school days in public schools has nothing to do with the school calendar system. Further testimony is that large number of good public schools with good headmasters and teachers have not decreased teaching days. So one can safely conclude that changing the current academic calendar was not a right prescription.

As per current regulation, schools should be open about 220 days a year. Allowing about a month for tests and examinations, school should have at least 190 teaching days. Private schools still maintain 190 teaching days. Some stray observations indicate that majority of public schools do not even teach for 120 days a year. The observations may or may not be true. There has been no valid and reliable verification.

Need for multiple academic calendar: Schools have to be closed to suit climatic conditions. Winter and summer vacations were fixed to suit climatic conditions. The need imposed by geography should not be ignored by the bureaucracy. Moreover, majority of school buildings cannot protect children from the tortures of the climate. Again, the earlier system was based on the consideration of monsoon and agricultural activities in farms, which are very important factor. Imposition of a rigid uniform school calendar is not a necessity. The earlier multiple type academic session is favourable for students. Change of calendar is a problem created by the bureaucracy. The solution must also come from there. If the government wanted to keep schools open with teachers going to classes, a simple government instruction to DEOs, school inspectors and headmasters would
do. Keeping schools open is not a big problem. Making teachers teach in the classroom is a problem which deserves serious attention.

Educational calendar for future: If the government felt that decreasing teaching days was a major problem, it should have thrown it up for wider discussion. That was not done. In fact, it ignored the strong opposition of those schools which cared about teaching days. In a democratic education system, much of the academic decision should be left in the hands of those who operate the systems at the lower level. A national educational system will improve quality only in a situation where freedom related to teaching is given to teaching institutions. Nepal’s educational problem is the eroding initiative and motivation among headmasters and teachers of public schools. The policy of dictating has started eroding even the initiative of promising private schools.

Conclusion and suggestions: Nepalese education system suffered greatly during the Panchayat regime due to the undemocratic ways adopted for planning and policy making in the education sector. There were a few who changed the basics of the system. Changing the school academic calendar is a similar act. If private school people oppose the present school calendar, let them be allowed to run schools as they propose. They are knowledgeable not bureaucrats. If MOE Education Regulation is to be amended, it can be done in a day. What is needed is flexibility in school operation calendar. If the government has felt that the decreasing teaching days in school is a problem, it can commission a comprehensive study in this regard.

The MOE and its cooperating agencies are spending millions of dollars in research studies which have only remote relationship with educational problems. The MOE would do a good job if it gets a study conducted on the school session and teaching days in schools. How long should MOE go on taking decision on academic affairs on the basis of hypothesis and assumptions?