Appropriation Bill Principles and Priorities: Infrastructure and digital economy building priority

Encouraging industries in the IT sector, which have high export potential, claims to make the services provided to citizens simple, economical and customer-friendly.

Baishak 29, 2082

Bimal Khatiwoda

Appropriation Bill Principles and Priorities: Infrastructure and digital economy building priority

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In the budget of the next financial year, the government will emphasize on building physical infrastructure and digital economy. According to the principles and priorities of the appropriation bill submitted by Deputy Prime Minister and Finance Minister Bishnu Paudel in both houses of Parliament on Sunday, legal reform and infrastructure development will be done to achieve the goal of Digital Nepal.

Incentive programs will be conducted to attract private sector investment in information technology. Finance Minister Paudel said that the services provided to the citizens will be made simple, economical and customer-friendly by further encouraging the industries in the information technology sector, which have high export potential. 

It is stated in the principle and priority that under construction projects of national pride and major infrastructure projects will be completed with priority. "Projects included in the project bank, which are profitable and ready for completion, will be allocated with priority," it is said in the principle and priority, "Foreign aid will be mobilized based on national needs and priorities."

The government has emphasized to achieve maximum return from limited resources by bringing efficiency in resource management and budget implementation. "Government investment will be focused on projects that have been completed, have a high rate of return and are large. The number of existing projects that are small, scattered, duplicated, resource uncertain and taking a long time to be completed will be reduced," the principle and priority states, "sequential projects will be reprioritized, restructured or postponed."  For the

project, the use of forest area, land acquisition and other issues will be facilitated. Finance Minister Paudel stated that public transport services will be made safe, comfortable and environment friendly. "Sustainable urban infrastructure development will be emphasized, private sector investment will be attracted in the construction of new cities and integrated urban infrastructure," according to the principle and priority, "building code will be updated and systematic housing development projects will be conducted." It is said that revenue mobilization will be made effective to maintain public finance balance. In order to meet the demand of energy during the dry season, priority will be given to the construction of reservoir projects and the mobilization of private capital in hydropower generation and transmission projects will be encouraged. 

"Priority will be given to the construction of domestic and international transmission lines," the principle and priority states, "Solar energy development will be encouraged according to the concept of energy mix." The electricity distribution system will be modernized and made reliable. Finance Minister Paudel says that the domestic consumption of produced electricity will be increased and the export of saved electricity will be facilitated. 

In order to increase the contribution of the tourism sector to the national income, priority will be given to the development of religious-cultural, adventure, sports and para-tourism infrastructure. "Emphasis will be placed on increasing the number of quality tourists and prolonging the stay period," it is said in the principle and priority, "The completed airports will be put into operation at full capacity and air safety arrangements will be made effective." "The list of rights of the union, state and local level mentioned in the constitution will be made the main basis for budgeting," it is said in the principle and priority.  Finance Minister Poudel said that to reduce the existing investment gap in development projects, new financial instruments will be used to mobilize private capital in high-return projects and resources will be managed through alternative development finance in the implementation of potential projects of national priority. In order to make the country's economy dynamic, legal, institutional and procedural reforms will be carried out and the role of regulatory bodies in the economic sector will be strengthened. More compatibility will be created to promote private sector investment. Upgrading the country to a developing country by 2026, necessary preparations will be made to achieve sustainable development goals by 2030,'' said the principles and priorities. 

It is mentioned in the principle and priority that the recommendations of the high-level economic reform recommendation commission will be implemented gradually. One door service system will be made effective to create an investment friendly business environment. It is also said that the use of information technology will be expanded for easy access of citizens to public service delivery. Interconnection between all types of public service delivery will be enhanced through the National Identity Card System and Citizen App. "Corruption will be controlled and good governance will be promoted," it is stated in the principle and priority, "the morale of national servants will be raised, the trust of citizens towards public institutions will be increased." 

Finance Minister Paudel says that policy arrangements will be made to attract youth to agriculture by facilitating collective and contract farming systems. He said that the adoption of modern and technology-based farming systems will be encouraged and financial access for commercial farming will be facilitated. 

By reducing the dependence on foreign employment, employment opportunities will be created in the country and an incentive program will be conducted to use the skills, capital and technology of the youth who have returned from working abroad for the development of the country. It is mentioned in the principle and priority that the social security program will be targeted based on economic and social disadvantage and be equitable. 

Promoting the use of latest technology to enhance entrepreneurship and productivity Emerging areas of economic potential will be encouraged. Health insurance is going to be restructured and managed. Finance Minister Poudel said that incentive programs will be conducted to promote start-up businesses with emphasis on products based on indigenous raw materials. 

Former finance ministers have given different responses regarding the principles and priorities of the appropriation bill brought by the government. Former Finance Minister Varshman Pun said that it seems that the program was submitted rather than principles and priorities. "The finance minister has said a lot of things, it doesn't seem like the budget will come according to that," he said, "the priorities of the budget are confused, the priority of the budget should have been determined in a way to address the current economic slackness, it was not seen." "In the allocation, it was said that projects below 30 million won't be kept, it is not clearly stated in principle and priority, it should come clearly," he said, "otherwise it will be a misuse of resources." "It is not necessary to build a 15-bed hospital building by investing 20/25 crores," he said, "The matter of merging schools should have come concretely, now we don't know how it will be brought in the budget." 

Finance Minister Bishnu Paudel said that the budget for the next financial year will be formulated taking the suggestions and ideas received during the discussion on the priorities as an important basis. A discussion on this is being started in the Parliament from Tuesday.

Bimal

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