Kathmandu: Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel said indicators of the country’s economy are at risk due to negative impacts on the global economy and challenges stemming from the country’s internal causes.
He however said he was continuously effortful to resolve economic problems in the country. He made this statement while delivering a speech on the matter relating to the half yearly report of budget for the fiscal year, 2022/23 in today’s meeting of the House of Representatives. “I am effortful in shoring up business confidence of the private sector, making relations between the government and the private sector credible and helpful, ending anomalies and divergences in revenue mobilisation, and resolving existing problems in the implementation of budget and in the financial sector,” he said.
However, it would take time for his efforts to be fruitful due to structural limitation and some foreign impacts, he said. The government has come up with the policy of maintaining budget balance, stressing the need for increasing capital expenditures, reducing expenditures except in emergency, making the revenue administration prompt and increasing the tax obedience and controlling its leakage, he informed.
Economic growth target of 8 per cent unattainable
The Finance Minister said that the target of 8 per cent economic growth rate set by the government for the current fiscal year cannot be attained. An assessment of the existing trend of the economy shows that the target of eight per cent economic growth rate cannot be achieved,” he said.
The Finance Minister stated that although it is positive that it has been estimated the production of paddy is likely to increase this year and the gradual improvement in the tourism sector, we have not been able to run the production oriented industries in full capacity, causing a slowdown in the economic growth rate.
Similarly, the deemed inflation ceiling set for the current fiscal year has overshot. “The target was to contain the inflation to 7 per cent in the current fiscal year. However, the year-on-year inflation based on the CPI has reached 7.26 per cent,” he added.