Kathmandu, May 28
Minister for Finance Yubaraj Khatiwada will present the details of income and expenditure estimated for the upcoming fiscal year 2018/19, at the Parliament meeting on Tuesday.
The constitution requires the federal government to present the annual budget before legislative body on Jeth 15 every year according to the Nepali calendar. The new fiscal year will begin in mid-July.
Though the Cabinet is yet to make a formal decision about the size of the budget, it is expected that is will be as big as Rs 1.6 trillion.
The KP Sharma Oli-led popular communist government will apparently try to make its budget a bit different from the policies adopted and promoted by the main opposition Nepali Congress.
In overall, you can expect the following priorities in the budget to be presented tomorrow:
1.
Socialist orientation
Officials of the Ministry of Finance say the government will not promote any populist programme that would just ‘distribute’ money among various social groups. Instead, it will adopt a socialist orientation as envisioned by the constitution.
It has been learned that Minister Khatiwada has sought a guarantee of implementation from the departmental ministers for the programmes they propose.
2.
Infrastructure development
Sufficient budget will be allocated to infrastructure development projects. The biggest recipients include follow-up projects of Melamchi Water Supply Project, highway extension projects, railway development, irrigation projects, hydropower development and transmission line extension.
3.
Narrowing trade deficit
The country currently faces a trade deficit of Rs 1 trillion every year. To minimise the amount, the government will adopt a policy to control import and promote export. The government will restrict import of goods other than necessary items.
Likewise, investment in non-productive sector will be discouraged.
4.
Economic and social reforms
Sources at the Ministry of Finance say the government turn stern in terms of taxation this time. New provisions will be introduced to collect more revenue whereas scrutiny over banks and financial institutions will be tightened.
On the other hand, some social security programmes will be introduced. Elderly allowance is likely to be increased. Sufficient amounts will be allocated to multiple sectors of socioeconomic life including agriculture, forestry, post-earthquake reconstruction, tourism, drinking water, energy, health and education.
