March 30: The government is unlikely to achieve the 7 percent economic growth target set for the current fiscal year (FY 2078/79). Finance Minister Janardan Sharma, who did not change the economic growth target even in the mid-term review of the current fiscal year's budget, admitted that the target would not be achieved. 

"The economic growth of above 7 percent was not announced just for the sake of speech, it was meant to be achieved. However, due to the damage caused by the floods and landslides in the agricultural sector in June/July, and the unexpected fluctuations in the international geo-politics, the economic growth rate cannot be achieved," he said at a program in the capital on Tuesday. 

Finance Minister Sharma said that the country is poor despite being rich in resources and they are making efforts to move towards prosperity through institutional strengthening. "There is a structural problem, and there can be no qualitative improvement without improving the systemic problem. So we are focused towards achieving that end," he said. 

According to him, the country does not have any policy regarding research and investigation. Further, he said that they are making an effort to bring a budget that emphasises on import replacement and increasing production to eliminate the problem of trade deficit and unemployment.  According to him, they are preparing to redefine the projects of national pride. 

Dozens of suggestions for the budget 

Economists, industrialists, bankers and others have given dozens of suggestions, ranging from the recent government-controlled cryptocurrencies to the opening of a policy research center for the budget for the coming fiscal year. 

Stating that the new type of digital business has added a challenge to the economy, they have suggested that it should be regulated rather than banned. 

Speaking at a discussion program organized in Kathmandu on Tuesday in collaboration between Nepal Economic Association, Confederation of Banks and Financial Institutions Nepal and the Ministry of Finance, economist Dr. Bishwambher Pyakurel said the latest index shows the country's economic situation is not good. 

He said that although there may be investment in cryptocurrency due to lack of liquidity, there is no study or research on it. 

"It looks like the Nepal Rastra Bank and the CIB have signed the contract. There is no proper study from the government level. Other countries have started keeping statistics of investment in crypto. It is necessary to rethink about cryptocurrency," he said. Stating that public debt is increasing in Nepal, he said that with the increase in debt at the rate of 4-5 percent of GDP every year, it seems that Nepal is heading towards the crisis faced by Sri Lanka. 

He emphasized that the upcoming budget should be aimed at reducing poverty and budget deficit. Economist Keshav Acharya said that imbalance of payments and inflation were the major problems in the economy. Stating that freight rates have increased due to the Russia-Ukraine war, he suggested that Nepal should now review the foreign exchange rate as well. "It has been 31 years that the foreign exchange rate hasn't been changed. Now we have to think about changing it." 

He suggested the government to limit the number of national pride projects and added that the donors should waive the installment during the difficult period that the country is going through.

He further said that the budget should be prepared in such a way as to provide subsidies to the farmers on the basis of productivity. 

Professor Dr Govinda Nepal said that the upcoming budget should be able to create road access to every municipality. "It is necessary to open basic health posts in every municipality and residential school in every district that can accommodate children of at least 2,000 poor people," he said. According to him, the government should now open a policy research center, in which it is necessary to invest Rs 50 million every year. 

Similarly, economist Posharaj Pandey said that the upcoming budget in the post-Covid-19 period should be able to create employment along with economic recovery. He alleged that the Ministry of Finance has become a body to collect revenue and buy votes.

Finance Secretary Madhu Marasini said that the upcoming budget will focus on creating production and employment in the country. He said that the current problems in the economy are unpredictable and they will move ahead by handling the situation.