Inclusive growth and economic development are being emphasized by all sectors. How inclusive is the coming government budget going to be? 

 

The focus of the national budget for the coming year will be on sustaining the country’s economic growth and making it pro poor sectors of the population. The government is preparing to bring a budget with aim of increasing the certainty of the attainment of the administration’s goal of achieving rapid and inclusive growth. For the purpose, the government has decided to prioritise some crucial sector such as hydropower, infrastructure, agriculture and irrigation. 

Implementation of big projects with involvement of local people will help achieve the aim of inclusive growth. Big hydro projects with shares from locals are supposed to create more employment opportunities at local level. Chilime hydro project is a successful example how local people can benefit from big project. The government will put its effort to improve the livelihood of local people in the coming budget. 

 

In view of the debate of fast growth versus inclusive growth, how challenging is it to accommodate both in the budget? 

 

Both development and growth are deeply interrelated. The government believes that growth is not possible without development and it is obvious that the government should accelerate development process. But, the access of poorest of the poor section of society should be ensured in the development activities. The government will encourage private sector for investment and welfare of the bottom part of the society should be ensured from the profit of the business. The government will also emphasize such sector which will have direct impact to the people at the grassroots level. For instance, tourism industry can play a very crucial role in achieving sustainable growth in Nepal and the coming budget will identify such sectors. 

 

It is said that the concept of inclusive growth requires budget scattering to some extent as inclusive growth demands budget allocation to every nook and cranny of the country and every section of the society. How is that going to be accommodated? 

 

Planning and monitoring of budget will help identify wasteful expenditures, adapt quickly as financial situation changes, and achieve the financial goals. This time, the government has been repeatedly pledging that the budget will not be distributive. We will be focused on key identified areas to achieve prosperity. The budget for the next fiscal year will focus on inclusive growth with employment generation. The government has also realized the fact that some previous governments were heavily criticized for being distributive. Public money should be spent in an accountable and transparent manner.

 

The government has set an economic growth target of 7 per cent by 2015. Don’t you think that the government is biting more than it can chew? 

 

I think, it is possible if budget is introduced on time and the political parties can ensure stability at least on economic front. Tax net has been expanded and overall economic activities have also accelerated in the recent years which have created opportunities for further economic growth. The government believes that six per cent economic growth can be achieved in the next year (by 2014). All we need is stable government, policy consistency and private sector’s greater involvement in business to achieve the target. 

 

What major policy changes are on the cards for the coming budget? 

 

There will not be major policy changes in the coming budget. The budget will be focused on economic agenda. The budget will be free from political interference since the current government does not represent any political ideology and party. However, there will be a serious revisit on old projects. Necessary projects will continue but unnecessary projects will be scrapped.