KATHMANDU, May 21: Although the government time and again reiterates to implement austerity measures by curtailing its unproductive expenses, the government seems to have included a number of populist programs in the upcoming budget for the fiscal year 2023/24.
The government’s policies and programs that were announced on Friday talks about launching a new campaign for youth employment. The new program is similar to the Prime Minister Employment Program (PMEP), which has failed to create employment to a large number of youths as per the pledge made by the government. Analysts believe that the new program will also be a waste of money from the state coffers just like the PMEP.
Similarly, the government has once again planned to form a high-level probe committee to study the status of the public enterprises that have remained closed for a long time or declared sick. Previously, the government had formed four probe panels that had prepared reports, just to gather dust.
Likewise, there are a number of programs like leasing out government-owned land and community lands to private companies. This year too, the government has said that it will prepare and implement a multi-year plan to produce chemical fertilizers.
Revised budget allocates excess funds for distributive programs...
The government policies and programs is the policy framework which provides a guideline to the Ministry of Finance to draft the budget for the next fiscal year. It has claimed that the economy is getting back on track.
According to Lawmaker Shishir Khanal, the government’s policies and programs do not include strong reform measures at a time when the government is facing acute shortage of the financial resources. “Rather, many programs are non-integrated ones that will just incur additional expenses,” he said.
After the government revenue fell significantly, through the mid-term budget review, the government announced austerity measures by reducing 20 percent of the budget approved for all the ministries and agencies for the current fiscal year. With only two months left for the current fiscal year to end, the government has collected revenue of Rs 805 billion while the expenditure has hit Rs 1.063 trillion.
Due to this reason, the government has aimed to decrease expenses under different headings like fuel, repair works, printing and information publication, information system and software operating costs, traveling and other allowances and programs.
Apart from these, the government’s policy paper does not possess concrete plans to reduce the public expenditure by a notable amount, lawmaker Khanal said.
Earlier in 2019, the Public Expenditure Review Commission led by economist Dilli Raj Khanal had recommended the government to dissolve all unnecessary boards and committees as it was taking a toll on state revenue. However, the then government ignored the recommendation of the commission.
Issuing of green bond to attract more foreign investment, mobilization of concessional loans and infrastructure bonds, simplification of land acquisition procedures, providing 50 units of electricity free to the people during rainy season and 30 units of electricity free of cost in winter and mandatory rule to purchase Nepali products even if they are 20 percent costlier than the foreign goods, among others, are the commendable measures, analysts said.
