Annual policy and programme places emphasis on economic reforms

Aarthik News

May 20, 2023, 7 a.m.

The annual policy and programme 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’s policy and programme have further emphasized making the national income judicious and developing the private sector as the key partner of economic development.

“The country would be made economically strong by enhancing production and productivity and expanding employment opportunities through the collaboration of government and private sector. The foreign investment would be mobilized in priority areas”, the annual policy and programme stated. The annual policy and programme have been introduced with a plan to take some crucial action for reforms in the tax system when the collection of public revenue was fairly low this time around. “The revenue administration would be made further effective and efficient. The existing tax system would be reviewed.

The tax net would be expanded. All kinds of economic activities would be integrated to a formal system. Revenue leakage, low invoicing, hundi, investment in illegal transactions and national capital flight would be brought under control”, the policy and programme further emphasized. The government policy and programme has also accorded priority to make the 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 would be improved.

Budget formulation to the implementation process of all three tiers of the government would be reviewed”, President Paudel said. “Allocation accountability would be strictly enforced; economic administration would be made transparent, result-oriented and information technology friendly”, the annual policy and programme noted. Public procurement process would be made further transparent and well-managed through the Public Procurement Monitoring Office, the policy and programme stated, adding legal provisions of the Public Procurement Monitoring Act would be amended.

The e-procurement would be made mandatory as per the government plan. The government has laid focus on making fiscal federalism effective. Fiscal transfers would be made based on the need of the expenditure and revenue capacity and would be linked with performance. The annual policy and programme has also touched upon the problems faced by banks and financial institutions of late.

“Banks and financial institutions, cooperatives and stock market would be made further effective. Depositors of the banks and financial institutions would be protected. Investment of the financial sector would be centralized in the productive sector. The loan would be mobilized in the further productive sector focusing on disadvantaged groups”, the annual programme added. “Effective monitoring and supervision would be placed to manage microfinance.

Policy on national cooperative would 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 would be made open in stock market. Youths going abroad for employment would be encouraged to make investment in public debenture and initial primary offering of the private ventures”, the annual policy and programme stated.