“The full-fledged budget must come on time if the country is to escape economic disaster. Hence, the political leaders must come together with urgency to work out national priorities and give a boost to market confidence and development spending,” said former finance secretary Rameshwore Prasad Khanal.[break]
Experts noted mainly that the lack of timely budgets for three consecutive fiscal years has spurred instability and lack of confidence in the market and eaten away at development opportunities. “These together threaten to disrupt economic stability. This is a serious matter,” Khanal said.
Given this situation and the long-running differences among political parties over the handling of the budget, Khanal suggested that the government avoid new programs and focus only on seriously implementing existing development programs.
“None of the parties have any differences over existing programs. By assuring that the new budget will focus on those programs only, the government can win the confidence of the opposition,” he said.
As for revenue policy, he suggested that the parties in opposition leave it to the government and let it decide how it plans to rationalize imports, diversify and boost trade, contain inflation and address problems surfacing in the financial sector.
“I believe the Finance Committee of Parliament must take up the issue immediately and provide broad guidelines to the government, so that some consensus could be built in the full House,” he further said.
Senior Economic Advisor at the Ministry of Finance Keshav Acharya also asked the political parties in government as well as those in opposition to promptly work out a common minimum program and formulate the budget immediately.
“Given the existing situation, I doubt we will be able to announce the budget on time without squeezing the process in parliament. For the sake of the general public, which is living through the pain of political instability, the parties should not hesitate to squeeze the process if required,” said Acharya.
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