Skip to main content

Budget 2011


The budget will not help the country as can be witnessed live from the political unease amidst the opposition and the utter loss of dignity in the conduct of the parliament.

‘New’ Nepal has become the land of the impossible where anything and nothing can happen.

The opposition rightly feels that this budget will turn the tide in favor of Maoism and communism as they face marginalization in a communist state albeit it with multiparty people’s democracy.

Until a clear winner will emerge through a new general election—and the sooner the better for political and economic stability – the economy ad interim will be a mafia economy dominated by cartel s and syndicates suffocating the supply chain to make it an economy that is unable to compete in the international arena.

This budget should not be expansionary with gifts for all. On the contrary, it should have sought, in coordination with the Nepal Rastra Bank, the supplementary and complementary monetary, credit and foreign exchange policies that will help douse the fires of inflation, tackle the balance of trade and payments disequilibria, fully utilized available production capacity and arrest the massive capital flight from the country.

A Joint Action Plan for National Economic Stabilization to save it from collapse should be brought out by the government and NRB at the soonest to utilize existing production capacity, remove hurdles to the supply chain and tackle the energy crisis with incentives for maximizing the immense possibilities for import substitution in the agricultural and livestock sectors. This action plan should be based on the submissions by FNCCI, FNSCI and the Chamber of Commerce and Industries. The Nepal Rastra Bank must devolve authority to its Regional Offices to play a proactive role in regional economic development and regulation with capacity development for this.

(adpted)
Labels:

Comments

Post a Comment

Popular posts from this blog

The Crossroads of the Nepalese Economy in 2026 AD

Forecast: Nepal's economic outlook for 2026 presents a mix of forecasts from major international institutions like the International Monetary Fund (IMF), World Bank, and Asian Development Bank (ADB). These forecasts reflect a blend of optimism regarding structural resilience and concerns over ongoing political and social instability. The ADB projected a 5.1% GDP growth for 2026 in April 2025, driven by the revival of tourism and improved agricultural productivity. However, the World Bank later forecasted a 2.1% GDP growth for 2026 in November 2025, indicating a significant slowdown due to political unrest and weakened investor confidence. The IMF projected moderate GDP growth continuing the recovery around 4.3 to 4.5%. The economic recovery is stabilizing but faces challenges due to a complex domestic environment and global uncertainty. Underlying Reasons: The divergent predictions stem from various factors. The unexpected youth movement, known as the "Gen Z uprising,...
Post a Comment
Read more

Let's discuss the government budget

A government budget is a financial plan that outlines the revenues and expenditures of a government for a specific period. It is a crucial tool for managing a country's finances efficiently to achieve economic and social goals like promoting growth, reducing poverty, and providing public services. Monitoring and adjusting the budget as needed is essential for fiscal stability and sustainability.  In Nepal, the tradition of presenting an annual budget dates back to the 1950s, with the first budget presented in 1951 covering the period from March 1951 to February 1952. This change followed the overthrow of the Rana regime in February 1951. During this transitional phase without a legislature, the first budget was presented at the end of the year BS 2007 through Radio Nepal. The budget amount was Rs. 52,529,000, with a tax collection target of Rs. 30,619,000. The then Finance Minister, Subarna Shamsher, presented the budget as part of the council of ministers led by Prime Minister Mat...
Post a Comment
Read more

Five Major Economic Vulnerabilities and Structural Weaknesses of Nepal

Nepal faces a multitude of challenges in transitioning into a developing nation. These obstacles include political, economic, social, infrastructural, and environmental issues that hinder its graduation from the category of Least Developed Countries (LDCs). Let's discuss five key economic vulnerabilities that Nepal needs to address in order to advance towards becoming a middle-income economy. 1. Agricultural Dependency: The country's economy is largely dependent on agriculture, which is susceptible to natural disasters such as floods, droughts, and earthquakes. The reliance on subsistence agriculture exposes a large portion of the population to climate risks, low productivity, and limited market access. 2. Remittance Reliance: Nepal heavily relies on remittances from its citizens working abroad, which makes the economy vulnerable to fluctuations in global economic conditions and policies. Remittances from Nepali workers abroad account for over 25% of GDP, posing vulnerability t...
Post a Comment
Read more