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EDITORIAL

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  Kathmandu,Tuesday May 30, 2000  Jestha 17, 2057.       


Don’t bleed the people

This year, the budget session of parliament began early and budget estimates for the next financial year are being presented more than a month earlier than in all previous years. May be we will also begin having our budget in February within the next few years and this could be taken as a preparation for that momentous occasion. We will then also begin our financial year from April rather than mid-July as at present. It is not as if something spectacular is being accomplished by presenting the budget more than a month earlier. We can understand the need for longer time for in-depth discussions if members of parliament are allowed to rise above partisan politics and discuss various proposals in the budget on the basis of their merit. Everyone knows this is not going to happen. In addition, indications have been given that Finance Minister Mahesh Acharya will be announcing new tax proposals to further bleed the already bleeding public. The arguments are that funds are needed to raise salaries of government employees and to meet "additional security expenses". Ministers, of course, will not forego their facilities and bring about the much needed austerity in government expenses to meet at least some of these outlays. They will continue to enjoy the perks and trappings of office no matter what the cost to taxpayers. It is the first priority of any government of a poor country like Nepal to ensure that austerity is practised in real terms at all levels.

The budget in countries like ours is taken as an effective instrument to mobilise domestic resources and to give a definite direction to the nation’s economy. No government can run without taxes but taxes should be levied in such a way that people are not only able to pay but willingly do so. In order for this to happen, the government must instill a sense of confidence among the people that it holds the welfare of the country and the people above all else. People must not see the corrupt go unpunished, they must not see the law being flouted and bent everywhere, and they would like to know what kind of taxes are being paid by whom including ministers and parliament members.

Another area where expenses can be curtailed but will not be is the "additional security expenses". It is futile to ask that a new para-military corps not be raised as it will only prove to be a white elephant because this provides justification for fresh taxes and additional expenditure, may be sometimes even unaccounted for expenses. The Finance Minister will do the country a lot of good if provisions for "contingency funds", especially in some ministries like the Home Ministry, are done away with. In this age of transparency, these are "opaque" funds that are largely unaccounted for. Today’s budget will be certainly welcomed if it is able to bring financial reforms within the government itself.


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