Budget implementation is weaker than last year

Yub_raj_Khatiwada

Kathmandu: The country has been able to slightly reduce the trade deficit in the recent six months owing to increase in export and decrease in import. Balance of payment is also strengthening.

Commitment on foreign and internal investment has increased, Finance Minister Yubaraj Khatiwada said, adding that the overall financial system is in balance. The introduction of new laws and procedures has resulted in financial reforms, he viewed.

The Minister however admitted that budget implementation was weaker as compared to the last year. The revenue collection was also not as per the expectation because the businesspersons were yet to be accustomed to the new system.

Making presentation on half yearly budget review at the ministry on Wednesday, Minister Khatiwada claimed that efforts made for two years has brought improvement in overall positive indicators of country’s economy. The economic growth rate is still high and inflation has not crossed the limit, he asserted.

Moreover, he lauded the increase in agriculture except some crops, expansion of industrial products, increase of investment on hotel and tourism related infrastructures, upgrading of airports, accelerated reconstruction of the quake-damaged structures, expansion of roadway and hydropower projects were positive factors to create atmosphere for contributing to the national economy.

The Finance Minister underscored the need to do a lot to boost national economy. He shared that as the MCC compact between Nepal and the US was not endorsed by the parliament on time, it badly delayed the expense of Rs 10 billion.