Himal Press 
KATHMANDU: Minister for Finance Dr Prakash Sharan Mahat said mobilizing resources for the upcoming budget was becoming difficult.
Speaking at a pre-budget discussion organized by the Federation of Nepalese Chambers of Commerce and Industry on Wednesday, Mahat acknowledged the challenge of budgeting new projects due to a shortage of resources even for ongoing multi-year projects with mandatory obligations. “Revenue has come down, while the government has failed to meet targets for grants and loans. There is a pressure to bring some new programs, but we are facing a shortfall of funds,” Mahat said.
Dr Mahat also said it was necessary to create a conducive environment for businesses for facilitating investment and increasing revenue. He emphasized the need for economic reform and said that the government’s focus is on increasing capital expenditure while reducing public spending. The finance minister also said interest rates can be brought down by reviewing the monetary policy.
Also speaking on the occasion, FNCCI President Chandra Prasad Dhakal said there was a need for structural reforms in the economy. He urged the government to collaborate with the private sector and initiate economic reform programs without delay. Stating that countries like India, China, Rwanda, and Bangladesh achieved poverty reduction through economic reform programs led by the private sector, he urged the government to take the initiative.
Dhakal said the government can initiate reforms through the review of the monetary policy, policies and programs for the next financial year, budget adjustments, and increased domestic and foreign investment. He urged the government to prioritize programs promoting investment and creating a self-sufficient economy by promoting domestic production.
Anjan Shrestha, the senior vice president of the FNCCI, stressed the need to center the budget around production and job creation. He said sustainable growth can be achieved by enhancing domestic production and striving for a self-sufficient economy.
