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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)
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