July 5: Finance Minister Dr. Prakash Sharan Mahat said that positive indications are seen for country’s vibrant economy as the new fiscal year approaches.

Speaking at a meeting of the Finance Committee of the House of Representatives, the Minister stated that the economy is poised for an upward trend, putting pressure on the government to accelerate progress towards its goals.

The Minister emphasized the need for collective efforts and commitments to drive economic expansion. The government is committed to increasing revenue collection and capital expenditure while discouraging general expenditures, he added.

Although the overall outlook is positive, the Minister acknowledged that challenges are inevitable in any economy, requiring effective solutions.

During the meeting, Revenue Secretary Dr. Ram Prasad Ghimire highlighted the challenges posed by increasing responsibilities for pension, social security, and remuneration.

The government must manage additional resources of approximately Rs 25 billion by July 10 to meet its mandatory obligations in the current fiscal year. In light of the current resource collection situation, reducing expenditures has become necessary, said Secretary Ghimire.

Committee members expressed concerns about the shortfall in revenue collection, which hampers efforts to address economic slowdown and promote investment in the industrial sector.

They also raised questions regarding the potential challenges and alternatives in managing fluctuations in remittance inflows, emphasizing the significant role of remittances in the national economy.

Additionally, they inquired about the lack of allocated budget for the management of chemical fertilizer, the agricultural sector, and strategic roads.

The members queried whether there are other sources for managing the foreign exchange reserve apart from remittances, stating their opinion that achieving budget goals may be challenging due to scattered budgets across small projects. (RSS)