Finance Ministry Outlines Five Strategies for Economic Transformation

Kathmandu. The Ministry of Finance has put forward five main strategies in the construction of the budget for the upcoming financial year for the transformation of the economy.

 Presenting the action plan in the meeting of the Finance Committee held on Tuesday, Finance Minister Swarnim Wagle said that the upcoming budget will move out of the traditional distribution-oriented system and focus on results-oriented and structural reforms. 

 This new roadmap is mainly based on the promises and economic agendas put forward by the ruling coalition partner Rastriya Swatantra Party. He said.

• Five Strategies

1. Dividend of Good Governance
The government's first priority is focused on good governance. Accepting the reality that the Nepali people have had to pay a huge price for misgovernance for a long time, Wagle said that work will be done so that the public directly feels the benefits (dividends) of good governance. He said that the budget will prioritize ending the hassle in government service delivery, adopting zero tolerance for corruption, and establishing systems. The government plans to implement good governance visibly in the daily lives of the people, not just in slogans.

2. Restructuring of the Economy and Digital Economy
It has been pointed out that Nepal's economy has been solely dependent on remittances for a long time and its structure needs to be changed. The upcoming budget will reduce remittance-based consumption and focus on the production and service sectors. Special emphasis has been given to the 'Digital Economy'. The government is committed to modernizing the economy by utilizing the new possibilities that come with information technology and digitalization.

3. Proximity and Integrated Infrastructure
A new concept of proximity has been put forward in infrastructure development. Under this, road, energy, air security, and digital grids will be developed in an integrated manner. The government will invest in an integrated manner in capital-intensive sectors such as urban development, energy, drinking water, and irrigation. 

The government will create an environment to attract private sector capital, not just government investment, in infrastructure development. Wagle said that modern financial instruments like hybrid annuity models will be used in road construction, not just loans and grants.

4. Universal Social Upliftment and Expansion of the Middle Class
The government has defined education, health, nutrition, and financial access as 'social investment'. It has been said that the results of the huge investment made in these sectors in the past have been like pouring water into sand, and now it will be made results-oriented. The government aims to expand the middle class and stabilize their standard of living. Wagle said that the budget prioritizes the plan to uplift low-income citizens through integrated social security programs. 

5. Expansion of Soft Power
Wagle said that the soft power will be expanded by strengthening Nepal's tourism, culture, and international relations. He said that emphasis will be placed on bringing in foreign investment by transforming traditional diplomacy into economic diplomacy. The government's plan is to mainstream the Non-Resident Nepalis (Diaspora) living abroad with respect in the country's development campaign. Wagle said that constitutional and legal obstacles will be removed to mobilize the resources and knowledge of the diaspora. 

Similarly, the Finance Minister has warned that the government will be ruthless in controlling revenue leakage and smuggling. Stating that illegal smuggling at the border is damaging domestic industries, he said that it will be strictly controlled.