As the trend of presenting programs in the form of highly ambitious plans and slogans without a solid implementation base is increasing, the budget seems to be becoming more unrealistic and popular. There seems to be a long gap between the budgeted targets and actual achievements.

For example, looking at the data of the last 2 years, it seems that the actual expenditure is less than the total estimated expenditure by more than 20 percent. Actual capital expenditure seems to be only two-thirds of the estimate. The estimated budget size for the current fiscal year 2081/082, has been reduced by 10 percent in this year's half-yearly review. Capital expenditure has been reduced by 15 percent. A

budget is not just a list of programs for a year, it is a continuation of the government's long-term thinking, strategy and policy guidelines. It also presents the government's mid-term roadmap. The programs included should be in favor of policy stability, results-oriented planning and sustainable financial management. In theory, every year's budget preparation process should be started from the previous few years. Because, it can coordinate with the country's long-term economic goals, structural reforms and sustainable development plans.

Usually a program or project mentioned in the budget statement has already completed about 2 to 3 years of preparation. Meanwhile, the process of project identification, feasibility study, cost benefit study etc. is completed.

Projects based on personal impressions or emotions are neither completed on time nor yielded as expected. In a country like ours with a federal structure, it is necessary to select projects based on the interaction between all aspects of society, the involvement of stakeholders, detailed financial analysis, and the involvement of local bodies. 

Increase in employment, prosperity of the country

Unemployment is high in Nepal. Therefore, the number of people going for foreign employment is increasing. Although the latest labor force survey conducted by the Central Statistics Department shows the unemployment rate at 11.4 percent, it can be assumed that this rate is much higher. Solving the unemployment problem needs to be prioritized. Job creation is not only a matter of production and economic growth, but also an important basis for ending the current extreme despair, building a peaceful and stable society. 

The country needs a budget that is not just populist but practical, implementable and focused on clear objectives. Considering the current situation of youth unemployment and the growth of foreign employment, it seems necessary to focus on job creation as the highest priority. There are other list of

needs and priorities, but instead of spreading the budget on many new topics, it is appropriate to bring a plan and program that gives a main message, the main topic and that will support it around it. However, the work of budget allocation should not be stopped for the ongoing plans. 

Specific programs focused on job creation may include skill development, self-employment promotion, support for entrepreneurship, construction of labor-oriented infrastructure, and tax and investment incentives for job-creating industries.

If the budget sets certain targets for employment and allocates resources accordingly, public trust in the government will also increase. Nepal can also take job creation as the basis of inclusive economic growth by bringing such a visionary budget. In order to have a strong economy, the rate of job creation needs to be higher than the growth rate of the population of the age group who can work and want to work. 

In the budget of 2024-25, the neighboring country of India had set employment as the main priority as the main slogan of the budget. Considering the fact that there is an unemployment rate of more than 9 percent as a major problem, job creation was made the main theme in the national budget in a clear and integrated way to solve it. Singapore has succeeded in building a strong and sustainable employment sector by attracting foreign investment, promoting innovation, investing in education and skills development for the long term.

Germany provided vocational and in-service training to unemployed youths, as well as made tripartite social partnership agreements between businessmen, labor unions and the government, thereby expanding income-earning opportunities and increasing production while maintaining industrial peace and stability. Iceland has made the sector an engine of economic development by promoting quality service in the tourism sector, controlling irregularities and fraud. Rwanda seems to have created a path and opportunity to make the young generation independent by encouraging entrepreneurship and foreign investment. 

The government of Nepal can also increase employment by bringing policies and programs to create new jobs, improving the tax system and promoting investment by collaborating with the private sector. As an example, some policies and programs are mentioned below, the implementation of which can significantly prevent youth migration by increasing employment in the country. 

Prioritizing labor-intensive industries

Higher domestic demand could be the main source of employment growth. But in our country, such demand is mostly being met by imports instead of domestic production. Many industries/businessmen within the country are more focused on trade than manufacturing, which is seriously impacting the job creation potential.

Reversing this trend requires an industrial policy that encourages value addition and labour-intensive production. For example textiles, furniture, food processing and construction materials, which can involve large numbers of low and semi-skilled workers. Industries that use more indigenous workers can be encouraged through tax or other non-tax measures. 

Flexible labor markets and labor laws

Rigid labor laws are a major obstacle to job growth. While the protection of workers' labor is essential, the overly rigid hiring and firing procedures need to be reformed. A 2000 International Monetary Fund study found that less flexible labor markets and stronger trade unions would increase both wages and unemployment. However, studies have shown that trade unions cooperating with employers can help increase productivity and expand employment. In order to make the labor market more flexible, it is appropriate for industries and businesses to prioritize partial/semi-employment. Identifying

sectors Some sectors of the

economy have particular potential for job creation. Such areas should be identified and prioritized in the budget. Some programs are mentioned for example. 

Retail business : This sector is an under-utilized potential sector for employment. In countries like the US, Canada and Australia, between 1982 and 1994, retailing created millions of jobs.

Providing vocational and entrepreneurial training and access to finance in this low-capital and skill-intensive sector can rapidly create jobs for women and youth. It seems to be more effective especially in semi-urban and neglected urban areas. 

Entrepreneurship promotion : Small and medium enterprises are the biggest sources of employment generation. 8 out of every 10 new jobs created in the world are created in this sector. Such enterprises are also centers of innovation and self-employment. Access to credit, digital tools and ease of policy and regulation should be given policy priority to strengthen the ecosystem of small and medium enterprises (SMEs) by strengthening linkages with the market. Arrangements can be made to provide interest-free loans to small and medium industries for a few months on the condition that they do not lay off workers to pay wages. 

Mixture of agriculture and service sector : Nepal is weakening in the competition of industrial production. In this case it is appropriate to give priority to agriculture and service sector. There is potential for unused land to be used for commercial agricultural production. The policy of banning the residential use of arable land in the Terai and Madhesh regions should be continued. In the same way, it is necessary to give priority to expanding the services of tourism, travel tours, hotels and natural health centers. Similarly, emphasis should be placed on IT, computer software production and export. 

Paid Internship : The federal budget should allocate a budget for a paid internship program. Internship program should be made mandatory in all government and private institutions (except sensitive sectors). The employer should provide a minimum allowance and the government should provide a part of it in the form of subsidy. It facilitates the transition from formal education to employment or work and provides practical experience for young people.

Improvements in employment programs : The federal government can arrange special programs and budgets related to employment, and the programs run by the provincial and local governments and the private sector should be operated in such a way that labor is the main focus as far as possible and local people can be given priority in employment. In this, employment can be increased, especially in the construction sector, and care gifting services will be conducted locally, and domestic workers can also be registered as employment and the safety of workers can be kept as a major condition. 

unemployment insurance : Nepal is not in a position to allocate budget for programs such as social security such as unemployment benefits. But in the case of being employed, it can be arranged to save some amount from the worker's salary and return it to him with interest for the purpose of self-employment in the case of unemployment. 

Capital mobilization is another major problem in our country. Encouraging domestic capital and attracting foreign investment are options for capital mobilization. The demand for Nepali labor in countries including the Gulf countries is high due to the fact that Nepali labor force is cheap and Nepali youth are hardworking, honest and flexible. If we can emphasize skills and training, the labor cost of our country will be relatively low and if we can mobilize capital as mentioned above, Nepali goods and services can become more competitive in the international market.