Kathmandu: Finance Minister Dr. Prakash Sharan Mahat has expressed optimism regarding the upcoming budget, claiming that it presents a path towards economic improvement. The budget for the fiscal year 2023-24 has already been endorsed by the House of Representatives and is currently under deliberation in the National Assembly. The government aims to address existing economic challenges by allocating funds strategically and focusing on capital expenditures.

According to the Finance Minister, the overall economic scenario in Nepal is oriented towards reform. Forex reserves have increased compared to the previous year, and the tourism industry is showing signs of recovery. The government expects bank interest rates to decrease, leading to increased loan disbursements and economic acceleration. Efforts are being made to discourage last-minute expenditures and prioritize capital expenditures in the upcoming budget.

The government believes that increasing capital expenditures and investment by banks and financial institutions will encourage the private sector to perform better, ultimately addressing the economic slowdown. The budget also incorporates new tax provisions aimed at improving revenue collection. The government hopes to create a favorable atmosphere for the nation's economy by bringing more enterprises into the tax network and implementing value-added tax (VAT) provisions.

Addressing the challenges in budget implementation, the Finance Minister emphasized the need for serious and responsible execution of duties within the overall state mechanism. Cooperation and coordination among all relevant bodies are crucial for successful implementation.

Regarding the private sector's role in economic progress, the government aims to regulate, promote, and facilitate private enterprises. The budget includes provisions to protect domestic production, and overall, the private sector has responded positively to these measures. The government aims to achieve collective benefits rather than granting privileges to specific groups.

Responding to concerns about decreasing market demand and purchasing power, the Finance Minister acknowledged the impact of the COVID-19 pandemic but remained optimistic about the economy's positive trajectory. He emphasized the need to make budget programs result-oriented and expressed confidence in the overall economic progress.

The Finance Minister also addressed criticism of the budget, including allegations of misuse of power to weaken federalism. He admitted that a small budget allocation was made for certain projects but clarified that this was due to limited resources. The government has taken these concerns seriously and assured that the District Election Office will not be affected by any proposed mergers.

In terms of addressing budget size and revenue challenges, the Finance Minister emphasized the importance of increasing expenditure capacity and making programs more result-oriented. He noted that additional assistance from donor agencies would only be sought once expenditure capacity is improved. The government has reduced internal borrowing to support private sector loans and has maintained a good track record of loan repayment.

The budget's allocation under the Miscellaneous heading was defended as necessary for addressing unforeseen situations. The Finance Minister assured that there would be no difficulty in mobilizing the budget, as it has already been passed by the House of Representatives and is being discussed in the National Assembly.

Finally, the Finance Minister stressed the need for a flexible monetary policy that supports the budget targets and economic growth. Lower interest rates on loans and greater flexibility are necessary to stimulate the economy.

In conclusion, the Finance Minister believes that the upcoming budget, accompanied by necessary reforms, will pave the way for economic improvement. The budget's allocation and execution will be guided by expenditure modality and limited resources, aiming to bridge the gap between needs and available funds.