KATHMANDU, August 3: Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel insists that budget implementation remains challenging due to faulty allocation.

Speaking at a meeting of the parliamentary committee on finance on Friday, Minister Paudel highlighted that the budget was allocated without properly identifying sources, and it lacked foresight, as the outcomes were overlooked.

Paudel informed that the government will prioritize the completion of ongoing projects while implementing the budget for the current fiscal year 2024/25. Additionally, adequate resources will be allocated to mega and national pride projects. The government will also prioritize projects that promise quick results. "The incumbent government does not spend indiscriminately," he said, assuring fiscal discipline in public spending.

On a different note, the minister mentioned that the government would evaluate the necessity and relevance of seeking support from development partners and donor agencies. "We should only accept international support and mobilize it after analyzing our needs and priorities," he stated.

According to him, the public debt, which has surpassed 40 percent of the country's GDP, should not be considered disorderly. He emphasized that public debt should be directed towards productive sectors and capital formation.

Furthermore, the finance minister pledged to maintain consistency between the government's fiscal and monetary policies to revitalize the country's economy and achieve sustainable growth. He added that his ministry would not interfere with the functions of Nepal Rastra Bank, an autonomous agency responsible for issuing monetary policy, but would instead work in coordination with it.

He claimed that positive changes were observed in the capital market following the introduction of the new monetary policy and urged investors to make well-informed choices. He advised that investment in the capital market should be based on the financial situation of the respective companies.

Assuring his ministry's role in ensuring the stock market matures, the minister stressed that the regulatory body should be highly vigilant to prevent activities like insider trading in the capital market. Regarding the establishment of a new stock exchange, he said that the government would make appropriate decisions after conducting necessary studies on the matter.

Also speaking at the meeting, former Finance Minister Dr. Prakash Sharan Mahat asserted that the government could not afford to spend indiscriminately to appease the public. "We must avoid populism. Discipline is essential in public expenditure management," he advised.

According to Dr. Mahat, there is no alternative but to increase capital expenditure to improve the national economy.

As for the monetary policy, he observed inconsistencies, noting that "sometimes Nepal Rastra Bank introduces expansionary provisions, while at other times, it's too strict."

The parliamentarians attending the committee meeting expressed that the bills sent to the committee should be forwarded to parliament as soon as possible after deliberation. They also called for effective implementation of the programs included in the budget.