Former Finance Minister Criticizes Budget for Weak Resource Assurance and Unrealistic Targets

Kathmandu. Former Finance Minister Dr. Prakash Sharan Mahat has stated that the budget of 21 kharba 24 arab rupees presented by the government for the upcoming fiscal year is weak in terms of resource assurance. Speaking at a program organized in the capital, he said that although there has been a tradition of presenting a budget with a size slightly larger than available resources in the past, this time the budget has surpassed even that, taking a big leap.

He stated that achieving the target of 7 percent economic growth in the coming year is impossible due to weak resources. Mahat's statement is that the budget implementation faces challenges because the targets for revenue, foreign aid, and foreign assistance proposed in the budget do not appear realistic.

He said that although the government claims to have provided relief in various sectors, the electricity tariff, public transport, health services, stock market, and land transactions have seen an increase in taxes and fees, which will create additional financial pressure on ordinary citizens, especially those in the lower and middle-income groups.

He accused that sufficient arrangements for improving the quality of public services in the education and health sectors are not visible. The former finance minister mentioned that the scope of tax has been expanded in various sectors with the objective of increasing revenue collection through the budget, and expressed doubt whether the expected revenue would be collected from it.

He said that complaints have been received about the increasing influence of individuals outside the institutional structure in various ministries, which has put the bureaucracy in confusion. According to him, good governance is a system based on rules. Weakening rules and legal processes promotes bad governance. Although the government is presenting itself as a stable government that will last for five years, he said that it will be difficult to achieve economic goals without effective governance and improvement in work efficiency.

Mahat indicated that inflation may also increase, stating that ordinary citizens will have to bear the burden of price increases.