June 20: Finance Minister Dr. Prakash Sharan Mahat has claimed that the budget for the next fiscal year was prepared in a fair manner and that it covers the daily concerns of the people. Speaking at the 66th Annual General Meeting of Morang Merchants’ Association (MMA), Mahat said, “I reckon this budget is not extremely outstanding and may have some errors and they can be corrected.”

Defending the VAT imposed on potatoes and onions, Mahat said, “Can you call Nepal an agricultural country and import potatoes and onions?”

He explained that VAT has been imposed on potatoes and onions so that local farmers' products can get a market and become self-reliant.

Meanwhile, the industrialists opposed the policy of imposing 10 percent customs duty on raw materials for vegetable ghee and oil industry.

Mahat mentioned that the allocation of capital expenditure has decreased and said that the size of the budget has decreased due to internal and external debt and their interest obligations. He said that although the capital expenditure is currently 17 percent, if the amount spent at the local level is added, it will be 27 percent.

Mahat claimed that the size of the development budget is small due to social security, various types of concessions and allowances, capital interest and employee salaries.

He claims that after Nepal Rastra Bank issues the monetary policy, the interest rate will decrease, the economy will become more viable and the revenue will increase.

He assured that the government will make efforts to turn Biratnagar into an economic hub. Terming the budget of Rs 120 million allocated for Biratnagar ring road as low, Minister Mahat said it can be increased by 4 folds by ensuring resources.