Maoist-led govt presents inflated but ambitious budget
September 19, 2008
Kantipur Report
The Rs 236 billion budget for the fiscal year 2064/65 (2008/09) was passed by the Council of Ministers today itself.
Reading out the his budget speech, Minister Bhattarai said that the country has achieved the Gross Domestic Product rate of 5.6 per cent against estimated 5 per cent in the last fiscal year while the average annual inflation rate reached 7.7 in 2007/08 compared to 6.4 per cent in the Fiscal Year 2006/07.The import rose by 16.1 per cent against the export rise of 2.4 in the Fiscal Year 2007/08, thereby contributing to the huge trade deficit of 22.2 per cent at the tune of Rs. 165 billion 330 million. This trade deficit comes out to be 20 per cent of the GDP. Such deficit with India alone stands at Rs. 105 billion 900 million. This is an alarming situation, he said.
Out of the estimated sources of financing the current year, Rs 129 billion 215million would be borne from the current source of revenue. Out of the total foreign
assistance of Rs 65 billion 793.8 million, Rs 47 billion 93.2 million would be borne
by foreign grant, and Rs 18 billion 700.6 million by foreign loan. However, there would be a deficit of Rs 41 billion 11.6 million even by mobilising both the sources.
Meanwhile, the budget speech considered the transitional economy, rapid economic growth, ensuring social justice and security and independence and inter-dependence as the principles of the budget and pointed out its objectives and priorities.Objectives of the budget are said to be making democracy more people-oriented with the institutionalisation of the federal democratic republic, sustaining peace in the country by bringing to logical conclusion the peace, process on the basis of the Comprehensive Peace Accord (CPA) agreed between the Nepal Communist Party (Maoist) and the seven politicalparties, accelerating the process of economic and social transformation to accomplish the great mission of building just, advanced and prosperous new Nepal, achieving higher economic growth that comes along with geographical and regional balance, social justice and employment opportunities, and providing immediate relief to the people to make them feel that the country has really become a republic.
Moreover, the budget has pointed out its policy and sectoral priorities.
Policy priority includes completion of the peace process and immediate relief, accelerated economic growth, and social security and inclusion.
Likewise, the sectoral priorities include transformation of agriculture sector, development of water resource, wider expansion of tourism, qualitative development and exanpansion of physical infrastructure, human resources development, and national industralisation.
The budget has drawn mixed reactions from experts, business entrepreneurs and commoners.<from;KANTIPUR>