Kathmandu: The Finance Minister of Nepal, Dr. Prakash Sharan Mahat, stated that the government is facing challenges in managing resources for the upcoming budget for the fiscal year 2023/24.

During a pre-budget discussion at an event organized by the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Mahat said that it has become increasingly difficult to manage resources for multi-year and periodic projects that must be implemented.

Mahat also noted that there are difficulties in accommodating new projects in the budget due to the numerous contracted projects that require resources. The government's revenue collection is low, and the collection of grants and loans has not reached the target. Therefore, there is pressure to provide projects in many areas, but resources are lacking.

The government has prioritized increasing investments to broaden the economy's scope. Mahat emphasized that the more investments increase, the more revenue collection would be. The government is committed to creating a climate for people to easily get into entrepreneurship in line with laws.

Mahat also highlighted that the government is focused on increasing capital expenditures while reducing public expenditures. He stressed the need for policy interventions in various sectors and the review of the monetary policy to reduce bank interest rates.

Chandra Prasad Dhakal, the president of FNCCI, called for structural reforms in the economy and urged the government to launch programs in partnership with the private sector without further delay. Dhakal highlighted the contribution of private sector involvement in economic reform programs in reducing poverty in India, China, Rwanda, and Bangladesh.

FNCCI Senior Vice President Anjan Shrestha urged the government to focus on production and employment creation while formulating the budget. He emphasized that promoting domestic production and achieving a self-sufficient economy would help the country advance towards a sustainable economy.