•      Mon Mar 4 2024

Mid-term review of budget: Economic indicators seem positive

Kathmandu, Feb 12: Finance Minister Dr Prakash Sharan Mahat has said that the country’s economy indicators in the country have witnessed impressive growth in the mid-term review of the current fiscal year’s budget and added that the economy has gradually improved.

Releasing the review report of the current fiscal year’s budget on Monday, the Finance Minister argued that the reforms measures initiated by the government have shown good results.

Dr Mahat stated that the economy has gradually returned to normal state from the beginning of the current fiscal year though the entire economic activities were slow due to stringent monetary policy taken to address the pressure of decreasing foreign exchange reserves caused to high inflow of loans and loose fiscal and monetary policies taken in the time of COVID-19.

“Positive results have started coming from the efforts initiated through budget speech on policy-level, system and procedural levels,” the Finance Minister said.

Likewise, the Finance Minister pledged to move ahead in a more coordinative manner in the days ahead by institutionalizing and strengthening the efforts taken so far for economic reforms.

The revenue collection in the current fiscal year is 6.54 per cent more compared to the last review period of the last fiscal year though it has not met the target for the current fiscal year.

Minister Mahat also argued that some major initiatives have been advanced to ensure effectiveness in public spending and capital expenditure.

Finance Minister Mahat claimed that loan mobilization of the international development assistance is being done only on the basis of needs and relevance.

However, there has been pressure on public spending due to sharp increase in reimbursement of the public debt and mandatory liability.

On the occasion, he stated that the new development projects will be initiated by ensuring budget for their timely completion. #Nepal