Budget draws mixed reactions

Kathmandu, July 15: Former Chief Economic Adviser of Nepal Rastra Bank Mukunda Sharma commenting on the new budget for the fiscal year 2058/59 said that the international loan /GDP ratio is high and unless it is significantly lowered, there is doubt on the availability of external fund as per the expectation of the budget.

Sharma was speaking at an interaction programme on the new budget organised here recently by the Center for Policy Studies. Commenting on the new budget Professor Sharad Sharma maintained that the budget had failed to give priority to the industrial sector and provision of credit alone would not be effective to rehabilitate the ailing industries.

Professor Sri Ram Poudyal, Chairman of the Center opined that the achievement of six per cent growth in the fiscal year 2058/59 is contingent upon the investment rate of 27 per cent and capital output ratio of 41:1, which is not realistic.

He expressed doubts about the realisation of the expected grant of Rs. 1420.8 million given the estimate and revised figures of realisation last year.

"The budget deficit is likely to be larger than expected and the targets of maintaining money supply growth rate at 12 per cent and inflation of 5 per cent is unlikely to be accomplished," Poudyal said.

Former Chairman of Tanahu Development District Ramchandra Pokharel stressed the need for decentralisation. Dr. Kanahiya Mathema pointed out that the budget had not given due attention to the problems of the agriculture sector and the ex-Kamaiyas.

Speaking from the chair, Dr. Jai Raj Acharya, Principal of Nobel Academy stressed the need for market development, adequate programmes for the ex-Kamaiyas and long term policy for reducing dependence on foreign aid.

Dr. Bamdev Sigdel, Vice Chairman of the Center extended the vote of thanks and spoke for developing and relying on indigenous system based on Nepalese soil and culture.

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