Eggheads Say No to Populist Budget

Intellectuals and economists today warned the government not to resort to a populist budget. At an interaction organized by Nepal Intellectuals’ Council (NIC) here today, speakers urged the government to follow priorities set in common minimum program of the coalition government.

The budget must reflect the as- pirations of the people — reduction in price hike, implementation of development projects in villages and social security, said Bhim Prasad Neupane, president of NIC. “Reducing prices is a major challenge for the government and it must work on it,” he said.

Due to global economic crisis, consumer prices have fallen to their lowest level all over the world but Nepal is experiencing a reverse phenomenon — double digit inflation since the last six months. Neupane urged the government to critically review populist programmes like literacy campaign and youth self-employment programme started by the Maoist-led previous government.

Joint secretary at the National Planning Commission (NPC) Pushpa Shakya said, “NPC has adopted a conflict-sensitive strategy in budget making,” he said. According to Shakya, the new budget will address the labour market and its dependence in agriculture. To counter the challenges, the new budget will focus on industrial development, he added.

However, Prof Dr Madan Dahal, doubted the government’s capacity to develop an investmentfriendly environment. “I am not sure that the government can make a conducive industrial environment in this transitional peri od,” he said. He urged the government to focus on five issues — subsidies in agriculture, make industrial environment, end power shortage, provide safe drinking water and control the price hike

Other ministries of the government have asked the Ministry of Finance (MoF) for around Rs 332 billion for fiscal year 2009-10. Meanwhile, NPC has targeted to achieve six per cent gross domestic product (GDP) growth - 4.4 per cent in agriculture and 7.1 per cent in non-agriculture sector — for the coming year. “NPC and MoF are working on it to make a realistic projection. It is not the final draft,” said Shakya. The government expects 17.5 per cent increase in revenue the coming year.

Revenue secretary Krishna Hari Baskota highlighted the demands of ministries in the next budget. According to Baskota, there is a strong demand for East-West Highway in hill region, upgrade Hulaki Sadak in Tarai, fast-track road joining Kathmandu with Tarai. Upgrade of sub-health posts to health post, free education till secondary level, international airport at Neejgarh and economic diplomacy budget for Ministry of Foreign Affairs (MoFA) are other demands.

The private sector has asked the government to ensure security of entrepreneurs, promulge new industrial policy and implement special economic zones for export promotion. The Ministry of Environment has asked for necessary laws to expand forest cover from the present 40 per cent to combat climate change. Economists Dr Govinda Ba- hadur Thapa and Prof Dr Bishwombhar Pyakurel urged for making an industrial environment for sustainable growth.