If government finances are to be made profitable, either current expenditure should be reduced or income should be increased. The government is not interested in reducing current expenditure, efforts to increase income have not been successful. A strong government needs to adopt strategies on both these fronts.
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The economy is slow – this sentence has become like an axiomatic fact of geometry in the context of Nepal in the last few years. As a result, the discussion of most sectors of the society ends up going to the 'slow economy'. Even though the government, political parties and finance-related bodies are saying that the economy should be made viable, they are not able to produce results.
The data of the government-affiliated bodies, which are often made public, confirm that there is a problem in the economy. The shadow of the problematic economy is also seen in the daily economic behavior of citizens. Due to the sluggish economy, the entire society is becoming discouraged. But the policies and programs adopted to make the economy viable do not seem to have brought significant positive results.
Even now, the private sector is not excited. As a result, investment has not increased. In the bank, an average of more than 5 billion investable funds have been accumulated throughout the year. The government has also not been able to stimulate the private sector by increasing its investment. The government is failing in capital expenditure. There are many reasons for the economy to slow down, and there are many consequences. The government should be able to realize that. For improvement, you should at least implement your policy.
This year, the government has allocated 3 trillion 52 billion 354 million rupees towards capital expenditure. But in 10 months, i.e. with only two months left to the end of the current financial year, the government has spent only 1 trillion 18 billion 31 crore rupees. This is 33.58 percent of the annual target. Similarly, the government of the current financial year aims to collect 14 trillion 19 billion 33 million rupees through revenue. It has collected only 9 trillion 15 billion 66 crore rupees till April.
This is 64.52 percent of the annual target. Till April, the government has spent 11 trillion 46 billion 59 billion 15 million while earning 9 trillion 42 billion 887 million. According to the data, the government finances are in a deficit of 2 trillion. Although the import has started to increase in the last months, its growth rate is only 12 percent. Despite the high growth in exports, the government's income from them is low. The scope of the
tax has not been expanded. The size of the informal economy is said to be more than 40 percent. Foreign grants and aid have decreased. Meanwhile, mandatory obligations such as social security allowances, salaries, pensions are continuously increasing.
There is a strong government in the country since the beginning of the current financial year. The government, which has a relatively long legacy like Congress-UML and is formed by the parties that determine the pace of the country, is also expected to improve the economy.
In the third point of the seven-point agreement that they made during the formation of the alliance last June, it was said to 'end the current laxity in the economy and create a reliable, professional environment and make economic activities viable'.
Therefore, the agenda to make the economy viable is not only the need of the country, but also the standard of success of the current government. But from the data of the government agencies to the feeling of the citizens, the current government does not seem to be moving towards success.
In the current perspective that every sector of the country is losing confidence due to the slow economy, although they should be serious about the reforms, the delay in appointing the governor of the National Bank and the confusion in the context have not given a positive message. Therefore, they should become sensitive to problems and strive for improvement. Must be able to show results.
If government finances are to be made profitable, either current expenditure should be reduced or income should be increased. The government does not seem interested in reducing current expenditure, efforts to increase income have not been successful. A strong government needs to adopt strategies on both these fronts.
At this time, the government's main focus should be on increasing capital expenditure. Government investment in national capital formation is 15 percent and private sector investment is 85 percent. But private sector investment is only in profitable sectors. When the government expands its investment, the confidence of the private sector also increases, investment expands. It increases import and export.
increases government revenue. Increases capital formation and employment. Therefore, the government should invest heavily in the physical infrastructure sector. When the government does not pay its obligations, the way money reaches the hands of citizens through various means is blocked. As a result, the market is not functioning. The government should be serious about this too. According to the
target, the government's efforts for revenue collection have not been fruitful. Half of the revenue is collected from customs. But India, which accounts for two-thirds of international trade, has open borders. So that it is easy for people who steal from there.
Therefore, in order to prevent revenue leakage, measures should be taken from increasing state surveillance to using modern technology. Even if it is possible to be strict towards collecting the remaining 4.5 trillion in revenue and reducing the informal economy, there will be an increase in revenue collection.
