KATHMANDU, May 28: Although the government has brought a balanced budget, former Finance Secretary Rameshore Khanal has said it interferes with the autonomy of Nepal Rastra Bank.
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Speaking to Republica, Khanal said the budget incorporates most of the recommendations made by the High-Level Economic Reform Suggestions Commission. "It shows restraint by removing small projects, raising the eligibility age for elderly allowances, and providing inflation allowances instead of salary hikes," Khanal said. "Measures like opening up foreign investment and initiating administrative reforms are positive."
However, Khanal criticised the government's attempt to interfere in the central bank's jurisdiction by explicitly stating tasks meant for Nepal Rastra Bank in the budget. "The budget mentions simplifying working capital procedures," said Khanal. "But that falls under the central bank’s responsibility. It is inappropriate for the Finance Ministry to encroach upon the central bank’s jurisdiction."
