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Indian Budget -2017: Plans to link Nepal with Railway

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Indian Budget -2017:  Plans to link Nepal with Railway
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February 2 : Indian Finance Minister Arun Jaitley presented the annual budget of 2017 announcing to provide more concessions on agricultural productions and some other sectors.

The budget amount of IRs 21,470 billion unveiled on February 1 is expected to make an impact on the import and export of Nepalese economy as well and reduce the competitive capacity of Nepal in the international level.

 The Indian budget- 2017 has prioritized railway. The Indian government has announced to provide IRs 55 billion for the development and expansion of railways. India has accelerated the pace of development and expansion of railway with the places linked with Nepali border such as in Uttar Pradesh (UP) and Bihar states of India.

The budget that was presented by the Bharatiya Janata Party (BJP) led government for the third time and is also termed ‘populist’ as the budget targets rural areas, poverty, unemployment and farmers. Similarly, the budget has given special priority to infrastructure building such as, railway, roads and waterway projects in the upcoming year.

According to Deep Kumar Upadhyay, Nepali Ambassador to India, Nepal too can benefit from the Indian government’s declaration of the construction of railways and roads.

Focusing to move ahead in agriculture, the budget has increased grants and has planned reduction of interest rates. When any Indian government brings programmes for farmers it directly affects Nepali farmers.  Nepal should devise policies learning from India’s policies in  agro-sector, say experts.

Meanwhile, K.P. Pandey, Director of Federation of Nepalese Chambers of Commerce and Industry (FNCCI) opined that the Indian budget will increase the strength of economic sector in India and this will weaken the competitive capacity of Nepal in the international markets.

There are some new arrangements for transparency of activities of political parties. The political parties now can receive only Rs two thousand as donation in cash and other transactions should be in digital system.  Nepal can learn from this, say experts.

Likewise, the budget presentation shows that India has spent all the budget allocated in capital expenditure, which can be a lesson for Nepal facing problem in expenditure. The Indian budget- 2017 has targeted to double the income of farmers in the upcoming five years.

 The Indian currency ban of Rs. 500 and 1,000 notes announced on December 8, 2016 has badly affected the Indian economy, but the budget calls it temporary.

 

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