By Madan Lamsal





New Budget's Growth Tricks

Growth is what Nepal needs today. The recent budget for this fiscal year has aptly embodied this national aspiration. The very size of the budget has ballooned-up by almost forty percent compared to last year. Accordingly,

the deficit gap, revenue targets, inflation estimates, government employees' pay and many more have grown substantially. if you point to a few aspects like GDP growth projections and proposed capital expenditure, you must be an anti-democrat for sure. When majority of things are so rapidly growing, one should not bother about a few things that are in such declining trend.

Besides, this budget has all ingredients to fuel growth. No sooner the budget declared that the government employees' pay would be hiked by 18 percent plus straight one thousand bucks, the market has reenergized instantly.

From vegetable venders to taxi drivers, grocers to airline operators, everybody has concrete plans to increase the prices, even before the salary-earners pocket their first added pay. The magic of this budget is: twenty percent increase in pay has the power to increase the price by at least forty percent.

As an axiom, the rise in prices is indeed the sign of growth and development. Look at the most expensive cities in the world, Tokyo, London, Moscow, Shanghai or Mumbai. They are developed because they are most expensive. Now Kathmandu can be a new candidate in that category, thus a developed city.

We have some extra qualities to ensure growth and development, by using unique model of 'growth by price rise'. No mechanism exists to control price and goods and service providers of all kinds have a free hand to fix their price and enforce cartels. Taxi drivers often bring the city to stand-still within hours if any regulators questions about their tampered fare meter and private water suppliers can stop the supply if authorities try to question about the potability of it. The only party that has to backdown invariably is the government. There are thousands of such examples which ensure prices in our country would only rise, and rise regardless of anything. This means, in other words, our growth and development is guaranteed.

Just the talk of elections would provide an additional impetus to growth. Political parties will actively engage themselves in 'donation' collection, while the businessmen and industrialists 'voluntarily' set aside a big sum for the cause. That means they need to earn more by every possible means of black-marketing to hoarding. This the time the country sees a true business-friendly climate, when no business person is penalized or admonished for making arrangements of extra earnings.

Elections have all other economic advantages. Donors come with offers of assistance in many forms -- cash, kinds, experts, observers, clergies and copies of bibles. Business activities in all sectors multiply, transports,hotels, goons, contract killers and armed robbers -- virtually everybody and everything will be hired by politicians and political parties to win the elections. Unemployment problem will be solved at once. That is the reason Nepal has taken up the technique of very often announcing the dates for elections but never actually holding them. From this experience, we can foretell that the proposed November elections will also be postponed for next April, so that Nepali economy can get double boost from the same elections fever.

In any case, if we were to develop and grow, we must stop thinking about aspects of decrease, decline or fall..Those In any case, if we were to develop and grow, we must stop thinking about aspects of decrease, decline or fall. Those who don't believe in incremental thinking, they must be socially boycotted. Therefore, along with the salary of the government employees, the rate of grease money must be increased. Business people, transport operators and contractors must increase their costs. Government must increase the taxes; business community then increases the tax evasion. No matter whatever is increased, it is growth. That is the reason our finance minister is so sure, his budget will only develop the country. You just don't worry, which direction it grows, however.