Economic problems will be resolved through monetary policy: Finance Minister Mahat « Khabarhub
Sunday, July 14th, 2024

Economic problems will be resolved through monetary policy: Finance Minister Mahat

07 May 2023  

Time taken to read : 2 Minute

  • A
  • A
  • A

KATHMANDU: Finance Minister Dr Prakash Sharan Mahat has said the current economic problems could be resolved through monetary policy instead of fiscal policy.

Initiatives would be taken to resolve the problems through the monetary policy as the government lacks options to run the fiscal policy, he said while addressing the Nepal Trade Summit-2023 here today organized by the Confederation of Commercial Banks and Financial Institutions Nepal (CBFIN).

“The implementation of the fiscal policy could not increase. We are unable to flow capital through the fiscal policy. We lack resources to increase fiscal spaces.”

The government is not in a situation wherein it can do work through the fiscal policy as the revenue collection is very low, he said.

“Time has come to work for achieving common goals and objectives of coordination. The Nepal Rastra Bank is at work to review the fiscal policy towards mid-May. Bank interest rates could be reduced through monetary equipment. We must focus on creating a climate of investment by decreasing interest rates through monetary equipment.”

The government could not effectively spend the development budget in time, he admitted.

Saying economy could not be dynamic due to failure to increase capital expenditures, resulting in low revenue collection, he stressed the need for creating a mechanism that would ensure capital expenditures since the very beginning of the next fiscal year, 2023/24.

“Now, it seems economy is weak and in problems. Internal trade and business is weak. Inflation is under control. But, there are problems. Industries and trade are in problems due to bank interest pressure. Revenue collection is not satisfactory as well,” he said.

Stating that the government’s efforts alone could be enough, he called for all sectors to come together for economic improvements.


Publish Date : 07 May 2023 15:49 PM

Today’s national news in a nutshell

Khabarhub brings you a glimpse of major developments of the

Six fake examinees arrested at Nepal Police exam

KATHMANDU: Nepal Police apprehended six individuals for attempting to take

Hamas-run health ministry says 71 killed in Israeli strike in Gaza

ISRAEL: The Hamas-run health ministry in Gaza says at least

Nepali Congress sets criteria for ministerial selection

KATHMANDU: The Central Work Performance Committee of the Nepali Congress

How many penalties have there been at EURO final tournaments?

All-time EURO penalties 101 penalties awarded 70 scored 23 saved 8 missed Most penalties