Kathmandu: Deputy Prime Minister and Finance Minister Bishnu Prasad Poudel has expressed his commitment to move forward by coordinating financial policy and monetary policy to improve the country’s economy.
While taking the departmental briefing held on Wednesday at the Ministry of Finance, he made it clear that there will be no interference from Ministry of Finance and Nepal Rastra Bank, but maintain lively relationship.
Finance Minister Poudel also instructed the Departmental Officials to move forward by implementing the measures to solve the current problems that have arisen in the economy.
In the program, the Economic Policy Analysis Division of the Ministry of Finance stated that there are currently three main problems in Nepal’s economy, namely lack of investable funds in the financial system, low revenue mobilization and high inflation. The Department says that now the investable funds are gradually easing and inflation is being controlled.
The Department has also informed that there was excess liquidity of Rs. 27 billion till 18th of January, that excess liquidity of up to Rs. 32 billion is considered good in Nepal. Last week, liquidity of Rs. 50 billion was flowed for 45 days.
The Department has informed that although high interest rates help in controlling inflation, it affects economic growth, low revenue mobilization negatively affects the balance of public finance and inflation makes people’s lives difficult due to the low purchasing power.
In the program, mentioning that some of the problems are global in nature, the issue of raising funds to achieve the economic goals taken by the budget in Nepal, the high cost of investment, the issue of keeping inflation within the target limits to maintain economic stability, and the issue of maintaining balance between government expenditure and revenue collection were presented as challenges.
