Kathmandu, Nepali economists are urging for significant modifications in the government's budgeting strategy for the upcoming fiscal year. During a pre-budget discussion at the National Assembly, a three-pronged wishlist was presented, focusing on the importance of federalism, sustainability in the environment, and increased revenue generation.
The economists expressed their dissatisfaction with previous budgets, pointing out that they failed to prioritize the federal system that was put in place in 2015. They claimed that previous allocations had a bias towards centralized planning, which weakened the planning abilities of Nepal's provinces. They highlighted the importance of a budget that aligns with the federal framework and enables provincial governments to efficiently manage their resources.
Environmental protection and climate change mitigation have become increasingly important in terms of budget allocation. Experts cautioned about possible future revenue deficits if the government does not prioritize finding additional sources of income in conjunction with eco-friendly initiatives. The focus of discussions revolved around Nepal's current reliance on customs revenue generated from vehicles and petroleum products. Economists have proposed the promotion of electric vehicles and a shift towards a more environmentally friendly economy. They recognize the importance of making adjustments to revenue collection strategies.
The pre-budget discussion shed light on concerns regarding the potential for surpassing spending targets and the issue of revenue leakage, especially at border points. Experts are calling on the government to take stronger action in order to reduce these leakages and improve the allocation of resources. In addition, there has been a closer examination of the impact of tax exemptions. Experts have urged for a thorough evaluation to gauge their influence on the country's production and exports, making sure that they play a significant role in driving economic growth.
Nepali economists are advocating for a budget that prioritizes fiscal responsibility and environmental consciousness, while also empowering Nepal's federal provinces. They are confident that this comprehensive strategy will lead to long-term economic growth for the country.
