Kathmandu: Finance Minister Prakash Sharan Mahat has said the existing bank interest rates will be revised in a bid to reform the obtaining economic scenario, making economy vibrant.
The Minister said this in his response to lawmakers' concerns raised during the deliberations on the principles and priorities of the Appropriation Bill (except tax proposal) for the fiscal year 2080-81 BS (2023-24) in the National Assembly (NA) today.
Stating that the new budget would be coming in a special context, he pledged for maximum efforts to address the economic issues to a larger extent.
Thanking lawmakers for their valuable feedback on the bill, he assured of taking ownership over such submissions. As the Minister said the upcoming budget would focus on achieving an inclusive economic growth rate instead of targeting it to a certain class or community.
According to the Minister, the government is to take all possible measures to increase the size of foreign assistance. "There will be efforts for increasing capital expenditure and its efficiency from the very first day of the fiscal year," he said adding that the new budget would be based on foreign assistance, revenue collection and internal loans. He also vowed for effective expenditures.
"The government is aware that investment at the moment is not encouraging as the cost has increased due to a high interest rate," the Minister said, adding, "Interest rates will be minimized through a monetary policy which will positively contribute to nation's economy and make it vibrant."
As he said, the home and finance ministries would work collaboratively to discourage revenue leakage. "Country witnessed a noticeable development in the areas of health, education and infrastructure. But this is not enough and many more is needed. "
He took time to say that the government approach for taxation would be centered in the interest of the nation and people instead of any specific group or community and suggestions of lawmakers would be taken into account in course of the budget formulation. "The focus will be for cutting general and unnecessary expenditures to promote austerity."
The Finance Minister made it clear that the government was committed to the social security and had no plan of cutting budget for the social security allowance.
The NA shall meet again at 6:31pm on coming May 17.