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Former Finance Minister and Nepali Congress leader Dr. Prakash Sharan Mahat has emphasized the importance of a balanced, realistic, and implementation-focused annual policy and program for the upcoming fiscal year 2082/83.
During today’s parliamentary meeting, Dr. Mahat disclosed that efforts have been made to formulate policies and programs based on party ideologies, with some constructive changes incorporated. He highlighted the need to focus on coordinating monetary and financial policies, result-oriented budget allocation, maintaining balance in social security, creating an investment-friendly environment, and promoting job creation.
Representing Kansai Nepal News, Ramesh Khatri stated that Dr. Mahat’s view on opposition leaders criticizing the current government’s performance as deteriorating is grounded in truth. Dr. Mahat emphasized the necessity of policymaking and programs being centered on nation-building, focusing on constructive and implementable suggestions rather than criticism.
Although the current policies and programs are solid and positive, Dr. Mahat suggested aligning them with implementation strategies to ensure tangible outcomes. He stressed the importance of breaking the trend of budget announcements that are limited in scope and focusing on making budget implementation more effective.
Dr. Mahat pointed out that the lack of coordination between monetary and financial policies weakens confidence in the private sector, leading to disruptions in investment flows. He also highlighted the need for continuous improvement in resource management to achieve economic development successfully.
Regarding budget planning, Dr. Mahat recommended discontinuing the practice of reducing budgets below three billion in projects that have already commenced, proposed by the federal government. He also advocated for streamlining unnecessary government structures, promoting collaboration between public institutions and the private sector, enhancing service quality, and ensuring effective resource utilization.
He emphasized the growing responsibility of social security programs, advocating for maintaining a balanced resource management approach. Additionally, he suggested focusing on good governance, improving basic services like education and healthcare, promoting agricultural modernization, and reevaluating import substitution policies.
Dr. Mahat highlighted that disagreements on policy and programs should not stem from populist rhetoric but should instead concentrate on programs that yield long-term results. He emphasized the need for substantive recommendations to move forward rather than mere criticism.
Acknowledging the prevailing economic challenges, Dr. Mahat pointed out the inadequate resources and the disparity between revenue and expenditure. He suggested that prioritizing structural development over current expenditures and balancing excessive operational costs with minimal capital expenditures could have a positive impact on development.
Addressing foreign aid management, Dr. Mahat stressed the importance of organizing foreign aid utilization systematically. He advocated for shifting from continuous grants to encouraging foreign investments, making investment processes more straightforward.
Dr. Mahat recommended resolving policy and practical issues in the investment sector to facilitate progress. He suggested keeping foreign loans as a secondary option compared to prioritizing multilateral foreign loans. Dr. Mahat also proposed elevating the tourism sector as a primary driver for job creation, stressing the need for expanding infrastructure like roads and hotels and privatizing the Nepal Airlines Corporation for this purpose.
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Author: MAYA | HARUTO
Posted at: May 6, 2025 12:03 am
