Govt to introduce Rs 159b budget

Govt to introduce Rs 159b budget
eKantipur.com, 10-Apr-2007

The government is working to announce a Rs 159 billion budget for the next fiscal year 2007/08, focusing on rehabilitation and reconstruction works, and the agriculture sector.

Of the total sum, the government is planning to spend Rs 90 billion under recurrent expenditure, and Rs 69 billion under capital expenditure, which also includes the principal payment of public debt, said Pushpa Raj Rajkarnikar, member of National Planning Commission (NPC). Speaking at an interaction with the newly appointed ministers, he said the government is targeting to collect Rs 98 billion as revenue, and receive Rs 42 billion as foreign aid.

The remaining Rs 19 billion will be mobilized through domestic debt, he said. Presenting a paper on the forthcoming Interim Plan, he said that the annual economic growth rate is targeted at 5.5 percent for the next three years.

Minister for Peace and Reconstruction Ram Chandra Poudel said the upcoming three-year Interim Plan should entail concrete strategies to lift the people out of poverty and wipe out social discrimination.

“In the context of new political development, the programs must make the deprived and excluded communities feel that they are enjoying the benefits of development,” he said.

Noting that spurring agriculture sector is necessary to improve the living standard of poor people, he asked the government to give subsidies for farmers in certain areas. Observing that scattered habitats in rural areas are a major problem for running development activities, Minister for Physical Planning and Works Hishila Yami stressed on the need to carry out proper and planned settlements.

“Resources have been scattered while operating development works. So, the outcome is not as effective as it should be,” said she.

Feeling that Nepal has a tremendous potential for herbal products, she said the upcoming plan should give a special priority to the pharmaceutical industry.

Minister for Local Development Dev Gurung said the plan should lay emphasis on developing the economy toward industrialization. “The public participation in any development work ought to receive priority. But, the current structure of the state is not favorable for this purpose,” said he. “The upcoming plan should be suitable for running development projects in a new federal Nepal, rather concentrating on the current center-controlled structure,” he said.

Finance Minister Dr Ram Sharan Mahat said the plan must mention a clear investment plan. “The plan should explicitly state what the government's policy is to increase private sector investment,” he said.