KATHMANDU, May 7: Finance Minister Dr Prakash Sharan Mahat has said the current economic problems could be resolved through the monetary policy review instead of the fiscal policy.
Initiatives would be taken to resolve the problems through the monetary policy as the government lacks options to run the fiscal policy, the minister said while addressing the Nepal Trade Summit-2023 here today organized by the Confederation of Commercial Banks and Financial Institutions Nepal (CBFIN).
Monetary policy cannot have all the tools to solve all economic...
The government is not in a situation wherein it can do work through the fiscal policy as the revenue collection is very low, he said. "The time has come to work for achieving common goals and objectives through coordination. The Nepal Rastra Bank is at work to review the fiscal policy towards mid-May. Bank interest rates could be reduced through monetary equipment. We must focus on creating a climate of investment by decreasing interest rates through monetary equipment."
The government could not effectively spend the development budget in time, he admitted. Saying that the economy could not be dynamic due to the failure to increase capital expenditure, resulting in low revenue collection, he stressed the need for creating a mechanism that would ensure capital expenditure from the very beginning of the next fiscal year, 2023/24.
"Now, it seems the economy is weak and in trouble. Internal trade and business is weak. Inflation is under control. But, there are problems. Industries and trade are facing problems due to bank interest pressure. Revenue collection is not satisfactory, either," he said.
Stating that the government's efforts alone would not be enough, he called for all sectors to come together for an economic recovery.
(RSS)
