May 14: Minister for Finance Dr. Prakash Sharan Mahat said that the government is not able to present expansive and big size budget.

At a programme organized by the Centre for Economic Development and Administration and the National Economic Concern Society Nepal in Kathmandu on Saturday, Finance Minister Mahat made it clear that the government was unable to roll out an extensive and big size budget due to limited resources and decreased revenue collection.

"We are currently facing a significant challenge in terms of revenue shortfall. There are limitations in presenting an expansive and large-scale budget," Mahat  said.

The Finance Minister expressed his commitment to making maximum efforts for economic reform and improvement. "After coming to the Finance Ministry, I have observed many problems. There are more problems than what meets the eye. But, I cannot claim to solve all of them. But, honest efforts will be made from my side for reform," he said.

The Finance Minister Mahat has stated that responsibility of principal and interest of the public debt had increased. “The responsibility to repay the loans taken for earthquake reconstruction will increase from next year onwards,” he added.

Furthermore, he has emphasized the need for the government to maintain efficiency and implementation in budget management and execution. 

"We require substantial improvements to our organizational structure and must amplify the impact of our budget. The current issue is that there is a lack of capital flow in the market without investments, and there is also no flow of funds through the banking system," the Minister stated.

Additionally, the Minister emphasized the need to improve the tendency to spend capital towards the end of the fiscal year.

During the event, National Planning Commission's Vice-Chairperson Dr Min Bahadur Shrestha pledged to take suggestions solicited from various sectors into consideration while allocating the budget and formulating policies and programs for the upcoming fiscal year. He further added that any issues missed out in the upcoming budget would be incorporated into the 16th periodic plan.

Former Chief Secretary Leelamani Poudyal expressed concern regarding the government's inability to build capital and create employment from investments made in the social security sector. He viewed the current problems in the national economy as a result of consistently having bad policies for nearly three decades.

Professor Dr Shivaraj Adhikari commented that economic growth was dismal compared to investment, while jobs were not created compared to the economic growth rate. He viewed the economic problems as being a result of increased public debt and investment without any corresponding economic growth.