Budget for next fiscal year to focus on economic revival, growth

KATHMANDU: The government is preparing the budget for the Fiscal Year 2022/23, keeping the revival of the country’s economy badly dented by the COVID-19 pandemic through production and productivity growth.

The Ministry of Finance is in the process of formulating the budget giving main priority to maximum utilization of water, land, forest, mine, natural resources and agriculture, export promotion management and substitution, expansion of quality tourism services and the development of electric energy, for the balanced economic development.

An official at the Budget Division of the Ministry said that the priorities of the forthcoming budget include bringing programs supporting the country’s graduation from the situation of absolute and multi-dimensional poverty into a medium income level country.

Likewise, other priorities include the government’s policy and program, the common minimum program of the incumbent government, strengthening of education and health sectors, and construction of physical infrastructure, among others.

The budget is being formulated based on the development projects conceived in the 15th plan, and a continuation of the development projects brought to achieve the sustainable development goals and the directives issued by the parliamentary committee.

“The national goals for the socioeconomic progress of the country, international commitments, expansion of access to capital and skills, building qualitative human capital, income growth, increase in competitive capacity and minimizing the economic risks are the priority topics of the next budget,” the official said.

The other topics to be prioritized in the upcoming budget are intensive public-private partnership, making the tax system investment and business-friendly so as to support the economic expansion.

Similarly, the topics also include making the tax system simplified through timely reforms in the tax structure and rate, and emphasis on mobilization of foreign aid as per the commitment and utilizing the international development assistance in enhancing production.