Nepal Rastra Bank Governor Vishwanath Poudel has said that the financial policy (government/budget) should take the lead in improving the economy in the country.
He said that since the good things that have been done in Nepal in the past were taken by the financial policy, monetary and other policies will help to achieve the objectives and goals taken by the government.
Speaking at the Finance Committee of the Federal Parliament on Sunday, Governor Paudel said, "The kind of development that has taken place in Nepal's hydropower sector is due to the financial policy or the government itself. The government has given income tax exemption for 10 years." Those facilities have only been implemented by the National Bank. If those facilities were not provided, this sector could not have come to its current state.' Therefore, he stated that monetary policy cannot advance by itself when finance policy does not take the lead.
He said that although the revenue collection has not increased as expected in the last decade, the money in the financial system is increasing. "Just because you have money, it doesn't mean you have to make random investments." "The state has not been able to address many classes and communities," he said. In such a situation, he said, balanced policies and programs should be brought in to reach all those classes and communities.
'In the current situation, if the Rasht Bank only emphasizes the expansion of credit, the situation is that the credit will be concentrated in the hands of limited people. It does no good . Therefore, it is necessary to create a balanced expansion of credit,' he said. In the past, loans have also been given to farmers and other categories. However, by giving loans, the farmers could not be taught to cultivate new seeds of advanced varieties and increase production, they did not want to change themselves. Therefore, Governor Paudel said that only by giving loans, production growth and balanced development cannot be achieved.
