Kathmandu: The government of Nepal presented its annual policy and program for the fiscal year 2080/81 at the parliament on Tuesday. The policy and program, which was presented by President Ramchandra Paudel, focuses on economic reforms.

In his presentation, President Paudel said that the government is committed to gradually improving the economy. He said that the government will address the challenges facing the economy, such as low capital expenditure, weak revenue mobilization, and pressure in the external sector.

The policy and program lays emphasis on the participation of the private sector for economic expansion, efficient revenue administration, effective capital spending, and reduction in public spending. The government has also emphasized on making the national income judicious and developing the private sector as the key partner of economic development.

The government has also come up with a plan to take some crucial action for reforms in the tax system. The revenue administration will be made further effective and efficient, and the tax net will be expanded. All kinds of economic activities will be integrated into the formal system, and revenue leakage, low invoicing, hundi, investment in illegal transactions, and national capital flight will be brought under control.

The government has also accorded priority to make annual budget spending system effective and well-managed. The government has put forth a plan to increase capital spending and reduce public expenditure. Allocation and implementation efficiency of public spending will be improved, and budget formulation to implementation process of all three tiers of the government will be reviewed. Allocation accountability will be strictly enforced, and economic administration will be made transparent, result-oriented, and information technology friendly.

Public procurement process will be made further transparent and well-managed through the Public Procurement Monitoring Office. Legal provisions of the Public Procurement Monitoring Act will be amended, and e-procurement will be made mandatory.

The government has laid focus on making fiscal federalism effective. Fiscal transfers will be made based on the need of the expenditure and revenue capacity and will be linked with performance.

The annual policy and program has also touched upon the problems faced by banks and financial institutions of late. Banks and financial institutions, cooperatives, and stock market will be made further effective. Depositors of the banks and financial institutions will be protected. Investment of financial sector will be centralized in productive sector. Loan will be mobilized in further productive sector focusing on disadvantaged groups. Effective monitoring and supervision will be placed to manage microfinance. Policy on national cooperative will be amended.

The government has come up with a policy to bring institutional reforms for the development and reforms of stock market. Investment from non-resident Nepali will be made open in stock market. Youths going abroad for employment will be encouraged to make investment in public debenture and initial primary offering of the private ventures.

The government has also announced a number of other initiatives, including:

-Increasing the number of tourists to Nepal by 20%
-Reducing the number of people living below the poverty line by 10%
-Increasing the number of girls enrolled in school by 50%
-Reducing the maternal mortality rate by 50%
-Increasing the life expectancy of Nepalis by 5 years
The government has said that it is committed to working hard to achieve these goals. It remains to be seen whether the government will be able to deliver on its promises, but the policy and program is a positive step in the right direction.