Supplementary Budget in offing‚ lawmakers in dark

KATHMANDU: The government is bringing Supplementary Budget by Friday, but parliamentarians have no clue who is preparing the budget and where.

“Even the Finance Ministry knows nothing,” claimed lawmakers.

But Dilli Raj Khanal, a member of the Supplementary Budget preparatory team comprising Sriram Poudel and Dinesh Chandra Devkota, said they would be bringing the Supplementary Budget by the week-end.

Khanal said the Supplementary Budget will address current economic anomalies and stimulate exports, thereby encouraging private sector investment, though there is less time to implement it.

The fiscal year has only four months left. “Due to lack of time to implement the budget, it will be a realistic one, he added.

“Evaporation of exports has bled the economy dry,” Khanal said, adding that the fiscal policy must stimulate the share of exports in the total trade that has dropped to 14 per cent.

“The supplementary budget will also address the current liquidity crunch in banks and increase their lending capacity to the productive sector,” he said, adding that without new investment in productive sectors more employment could not be generated.

The current ordinance budget presented by Surendra Pandey lacked vision as it came without programme and policy, he justified the need of the Supplementary Budget thus, saying it will expedite capital expenditure and stimulate economic activities.

However, parliamentarians in the Legislature Parliament today raised hell over the style of budget preparation.

“The government is bringing supplementary budget when there’s only four months left for the fiscal year to end,” said Nepali Congress lawmaker Ram Sharan Mahat objecting to the style of budget preparation.

“We have heard that the supplementary budget is being prepared in ‘guerrilla style,” he said, adding that a new economic policy is needed to boost production and create conducive investment environment.

The production sector is performing poorly due to regular power outage, labour problems and lack of government initiative.

Tabling a Proposal of Public Interest, Mahat, seconded by Prakash Chandra Lohani and Binod Chaudhary, urged boosting of investor confidence, stopping capital flight and containing the price hike.

The consumption expenditure to GDP ratio has increased and gross national saving is shrinking, Mahat said, adding that industries are being closed, blocking employment opportunities due to plunge in exports; Forex reserve has dropped and the country is moving towards uncertain future.

In like vein, Binod Chaudhary, CPN-UML lawmaker, said the government has to create conducive environment for industries to propel economic growth.