With an emphasis on the nation’s economic changes, the annual policy and program for the fiscal year 2080–2081 has been presented to the parliament.
President Ramchandra Paudel stated that the government’s objective is to steadily develop the economy when presenting the yearly policy and program at the joint sitting of the federal parliament.
President Paudel stated this while introducing the annual policy and program: “Reduction in the overall demand of the economy coupled with shrinking liquidity, higher interest rates, price inflation, low capital expenditure, weak revenue mobilization and pressure in the external sector would be gradually addressed.”
The annual policy and program emphasizes private sector participation for economy expansion, effective capital spending, efficient revenue administration, and a decrease in state spending.
Making the national income prudent and strengthening the private sector as the primary partner in economic development are two other priorities stressed by government policy and programs. Through the cooperation of the public and private sectors, the nation would become economically robust by increasing production and productivity and increasing employment possibilities.
In key areas, foreign investment would be mobilized, according to the annual policy and program.
The annual policy and program was developed with the intention of implementing some critical tax system reforms at a period when the collection of public revenue was relatively low.
“The tax collection agency would become even more effective and efficient. The current tax system would be examined. It would widen the tax net.
All forms of economic activity will be integrated into the established framework. The policy and program also stressed the need to address issues including national capital flight, low billing, hundi, investment in unlawful transactions, and revenue leakage.
A priority of government policy and programs is to ensure that the annual budget expenditure system is efficient and well-managed.
The government has proposed a strategy to boost capital expenditures while lowering public spending.
“Public spending would be allocated and implemented more effectively. All three tiers of the government’s budget-making and implementation procedures would be evaluated, according to President Paudel.
The yearly policy and program stated that “allocation accountability would be strictly enforced; economic administration would be made transparent, result-oriented, and information technology friendly.”
According to the policy and program, the Public Procurement Monitoring Office would further increase the transparency and management of the public procurement process, and the Public Procurement Monitoring Act’s legal provisions would be changed.
The government’s proposal calls for making e-procurement mandatory.
The effectiveness of fiscal federalism is a priority for the administration. Fiscal transfers would be made in accordance with performance goals and the capacity for revenue and expenditure.
The yearly policy and program has also mentioned the recent issues that banks and other financial institutions have been having. “We would increase the effectiveness of banks and other financial institutions, cooperatives, and the stock market.
Bank and financial institution depositors will be safeguarded. The financial industry’s investment would concentrate in the productive sector. According to the annual program, “loan would be mobilized in more productive sectors with a focus on underprivileged groups.
“Adequate oversight and monitoring would be in place to manage microlending.
A change would be made to the national cooperative policy. The government has developed a plan to implement institutional reforms for stock market development.
The stock market will accept investments from non-resident Nepalis.
The yearly policy and program indicated that investments in public debentures and initial public offerings of private businesses would be encouraged from young people traveling overseas for work.