Annual policies and programs place emphasis on economic reforms

Published On: May 20, 2023 10:30 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU, May 20: The annual policies and programs for the fiscal year 2023/24 have been presented at the parliament with a focus on economic reforms of the country.

Presenting the annual policies and programs at the joint meeting of the federal parliament, President Ram Chandra Paudel said the government has a goal to gradually improve the economy.

"Reduction in the overall demand of the economy coupled with shrinking liquidity, higher interest rate, price inflation, low capital expenditure, weak revenue mobilization and pressure in the external sector would be gradually addressed", President Paudel said while presenting the annual policies and programs.

The annual policies and programs lays emphasis on the participation of the private sector for economic expansion, efficient revenue administration, effective capital spending and reduction in public spending.

The government's policies and programs have further emphasized on making the national income judicious and developing the private sector as the key partner of economic development.

"The country would be made economically strong by enhancing production and productivity and expanding employment opportunities through the collaboration of government and private sector. The foreign investment would be mobilized in priority areas' ', the annual policies and programs stated.

The annual policies and programs have been introduced with a plan to take some crucial action for reforms in the tax system when the collection of public revenue was fairly low this time around.

"The revenue administration would be made further effective and efficient. Existing tax system would be reviewed. The tax net would be expanded. All kinds of economic activities would be integrated into the formal system. Revenue leakage, low invoicing, hundi, investment in illegal transactions and national capital flight would be brought under control", the policies and programs further emphasized.

The government policies and programs have also accorded priority to make the annual budget spending system effective and well-managed. The government has put forth a plan to increase capital spending and reduce public expenditure.

"Allocation and implementation efficiency of public spending would be improved. Budget formulation to implementation process of all three tiers of the government would be reviewed", President Paudel said.

"Allocation accountability would be strictly enforced; economic administration would be made transparent, result-oriented and information technology friendly", the annual policies and programs noted.

Public procurement process would be made further transparent and well-managed through the Public Procurement Monitoring Office, the policies and programs stated, adding legal provisions of the Public Procurement Monitoring Act would be amended.

The e-procurement would be made mandatory as per the government plan. The government has laid focus on making fiscal federalism effective. Fiscal transfers would be made based on the need of the expenditure and revenue capacity and would be linked with performance.

The annual policies and programs have also touched upon the problems faced by banks and financial institutions of late. "Banks and financial institutions, cooperatives and stock markets would be made further effective. Depositors of the banks and financial institutions would be protected. Investment in the financial sector would be centralized in the productive sector. Loan would be mobilized in further productive sectors focusing on disadvantaged groups", the annual programs added. "Effective monitoring and supervision would be placed to manage microfinance. Policies on national cooperatives would be amended".

The government has come up with policies to bring institutional reforms for the development and reforms of the stock market. "Investment from non-resident Nepali would be made open in the stock market. Youths going abroad for employment would be encouraged to make investment in public debenture and initial primary offering of the private ventures", the annual policies and programs stated.

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