May 7: Finance Minister Dr Prakash Sharan Mahat has said the current economic problems could be resolved through the monetary policy instead of the fiscal policy.    
Addressing the Nepal Trade Summit-2023 organised by the Confederation of Commercial Banks and Financial Institutions Nepal (CBFIN) on Sunday, Finance Minister Mahat said initiatives would be taken to resolve the problems through the monetary policy as the government lacks options to run the fiscal policy.    
"The implementation of the fiscal policy could not increase. We are unable to flow capital through the fiscal policy. We lack resources to increase fiscal spaces," he said.    
The government is not in a situation wherein it can do work through the fiscal policy as the revenue collection is very low, he said, adding, "The Nepal Rastra Bank is at work to review the fiscal policy towards mid-May. Bank interest rates could be reduced through monetary equipment. We must focus on creating a climate of investment by decreasing interest rates through monetary tools."    
He admitted that the government could not effectively spend development budget on time. Saying that the economy could not be dynamic due to the failure to increase capital expenditure and low revenue collection, he stressed the need for creating a mechanism that would ensure capital expenditure since the very beginning of the next fiscal year (FY 2023/24).    
"Now, it seems the economy is weak and in problem. Internal trade and business is weak. Inflation is under control. But, there are problems. Industries and trade are in crisis due to bank interest rates. Revenue collection is not satisfactory as well," he said.    
Stating that the government's efforts alone could not be enough, he called for all sectors to come together for improving the economy.  -- RSS