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Internal income of province should be 50 percent’

Khabarhub

October 6, 2021

2 MIN READ

Internal income of province should be 50 percent’

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KATHMANDU:  Various speakers have laid emphasis on increasing the internal income of provinces to reduce dependency on the federal government for fiscal resources.

At a discussion program ‘Province government’s internal revenue: identification of innovative areas, reform, and potential’ organized here Tuesday by Gandaki Province Ministry of Finance, the participants stressed the need to ensure domestic resources sharing 50 percent of the annual budget.

They highlighted the urgency of developing a self-reliant economy by identifying new resources in the context when the domestic revenue target of Rs 5 billion in the current fiscal year budget of the province government (Rs 30.5 billion) was very low.

The speakers also suggested making the collection of vehicle tax – the main source of domestic revenue of province government – scientific and leakage-free.

Minister for Finance Ramjee Prasad Baral pledged to intensify research about potential revenue areas for economic development. He added the enterprises operated without registration would be brought to the mainstream of taxation.

Chief Secretary of Gandaki Province, Dr Damodar Regmi stressed the need to widen the scope of tax in line with the changed context. “Allocation of small amount in the name of the multi-year plan initially and increasing burden without assuring resources has created trouble in the management”, he added.

Dr Regmi also spoke of the urgency of bringing reforms in tax administration. “Tax rates should be low but tax administration should be made effective”.

Former Governor of Nepal Rastra Bank and former Vice-chairperson of National Planning Commission Dr Deependra Bahadur Kshetry said all three tiers of the government make ambitious plans but fail to implement it in line with its spirit.

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