May 31: Finance Minister Bishnu Prasad Poudel has assured that the government will implement the budget for the upcoming fiscal year which was announced on May 29.

The finance minister made such remark dismissing concerns over the implementation of the budget brought through ordinance.

Speaking at a press conference organised at the Ministry of Finance on Sunday, Minister Paudel said that the government would implement the budget to achieve the economic growth rate of 6.5 percent.

According to him, the finance ministry is starting discussions with various line ministries on budget implementation from Monday (May 31) itself. He clarified that the government did not bring a provisional budget as it did not want to shy away from its duty during the current crisis caused by coronavirus pandemic. He claimed that a full-fledged budget was announced as per the constitutional provisions.

Experts say that the size of the budget has increased as the government tried to introduce a budget which was populist in nature. This poses a serious problem in financial discipline and it would be difficult to implement, according to the experts.

However Minister Paudel said that the government cannot avoid its responsibility towards the country and the people by bringing only a provisional budget in such a time of crisis. “Therefore, we have brought the budget in line with the constitution, and now we are determined to implement it.”

According to Finance Minister Paudel, the budget has given maximum priority to the revival of the economy by providing relief and facilities to the people and businesses affected by COVID-19. The budget has put forth the idea of ​​restoring the economy to its old rhythm and making revitalizing it.

Denying the remark that there was no budget allocated for the election, Minister Paudel said that the government would mobilize all its resources to conduct the upcoming election in a free and fair manner. According to him, the required budget has already been allocated for the election. He said that the budget allocated for the polls will be released to the Election Commission and the security agencies as per the need.

Minister Paudel claimed that the government took the responsibility of increasing the social security allowances including the old age allowance even during the pandemic. He said, "Contribution-based social security fund has already been implemented. Once it is fully implemented, the burden on the government will be greatly reduced. We have not reached the limit where we wouldn’t be able to bear the load right now."

According to him, the government has introduced a tax exemption and relief programme in the budget considering the sectors affected by the pandemic.

Minister Paudel said that the government has brought programs such as old age allowance and salary increment to fulfill the responsibility of the nation and not just to lure fellow voters.

Meanwhile, Governor Maha Prasad Adhikari has stated that the budget target could be achieved as soon as the impact of the coronavirus declines. According to Adhikari, the statistics show that the loan flow from last November to April has reached Rs 700 billion. "Considering the same situation, there will be an economic revival of the 'V' shape," he said.

Finance Secretary Sishir Kumar Dhungana said that the economic growth rate of 6.5 percent aimed by the government is attainable. According to Dhungana, the policy adopted by the government will help achieve the economic growth.

"The budget has programmes for relief and rehabilitation," he said, adding, "Which will increase production and create more job opportunities."

According to Dhungana, the economy that collapsed due to the pandemic will soon return to normal as the government has made vaccination drive against COVID-19 its top priority.

"We have made vaccination our first priority. As soon as the vaccines arrive, our economic activities will return to normal," Dhungana said, “Which is why we have aimed for the economic growth rate of 6.5 percent. A study conducted by Nepal Rastra Bank also states the same. As soon as the market reopens, economic activities will pick up pace and demand will increase, so we can easily achieve the targeted economic growth.”

While many are questioning the size of the budget, he said that it was only 11.5 percent of gross domestic product (GDP). According to him, the government is trying to raise internal debt based on international standards.

According to Dhungana, the implementation of various projects will be expedited in the current fiscal year.

Although there are concerns that revenue collection may be affected due to the large tax exemptions, Revenue Secretary Ram Sharan Pudasaini clarified that the exemptions were given mainly to the manufacturing industries, tourism business, small taxpayers and export-oriented industries and for the import of health equipment.