Kathmandu, Feb 16: Prime Minister KP Sharma Oli has stated that there is no need for doubt or suspicion among the coalition partners regarding the country’s development, prosperity, and maintaining political stability.
Speaking at the House of Representatives meeting on Sunday, he emphasized that there is a high level of trust and understanding between the coalition parties. He mentioned that while formulating the budget, efforts will be made to maintain frugality in current expenditures while increasing capital expenditures. He added that projects will be selected based on their inclusion in the project bank, sectoral priorities, availability of investment sources, and their ability to yield quick results. Furthermore, projects will only be selected if they have completed all necessary pre-preparation processes as per classification standards.
He also highlighted the need to expedite project implementation, resolve issues in contract management, amend the public procurement law as necessary, and activate mechanisms for coordination between different levels of government and agencies.
He stated, “While maintaining frugality in current expenditures, we will increase capital expenditures and improve project implementation. Projects will be selected based on their inclusion in the project bank, sectoral priorities, investment source availability, and quick returns. Necessary pre-preparations must be completed as per classification standards. We will also work towards expediting project implementation, resolving contract management issues, amending public procurement laws as needed, and ensuring coordination among different government levels and agencies. The recent policy and legal reforms through ordinances will help improve the business environment, boost investment, and enhance economic activities.”
He reiterated that the current government was formed with the collaboration of two major political parties and other allies who played a significant role in Nepal’s democratic movement. He assured that there is a strong mutual trust and understanding among coalition partners, and their collective goal is to continue the country’s development, prosperity, and political stability.
Capital expenditure increased by 15% in six months
Responding to the questions raised by parliamentarians, Prime Minister KP Sharma Oli also stated that capital expenditure in the first six months of the current fiscal year has increased by 15%.
He emphasized the importance of using data for comparisons and analysis. Acknowledging that capital expenditure is still low, he pointed out that it is higher than during the tenure of former Finance Minister Barsha Man Pun. He reassured that the government has been seriously working to improve the economy since taking office. He metaphorically stated that paddy cannot be harvested in December if it is not planted in June, implying that economic recovery takes time.
He remarked, “I appreciate the concerns raised by the honorable member, who is also a former finance minister. Seven months ago, you were the finance minister yourself. I request you to compare inflation rates before and after that period. We must develop the habit of questioning and comparing data. Yes, capital expenditure is low, but it is higher than during your tenure. In fact, capital expenditure in the first six months of this fiscal year has increased by 15%. Economic stagnation did not happen overnight, and it will not be resolved in a single day either. Since coming into government, we have been working seriously on economic recovery, and some positive results are already visible. If paddy is not planted in June, it will not yield a harvest in December. It is not fair to separate the policies and spending priorities of the previous government and then claim the economy has not improved. However, we are now working to remove legal obstacles, enhance the investment environment, and boost production.”
Prime Minister Oli further highlighted that the tax and customs system is being digitized, and payment processes have been simplified. He noted that after Nepal Rastra Bank introduced policies to lower interest rates, bank interest rates have now dropped to single digits. As a result, he stated that there are now better opportunities for industries, businesses, and startups. #nepal #finance #capital #expenditure
