'Forthcoming budget would create environment for investment'

Finance minister Dr Ram Sharan Mahat Wednesday reiterated that the forthcoming budget would focus on creating a conducive investment climate and expedite development activities including infrastructure development and optimum utilisation of potentials.

He was addressing a discussion programme on ‘agenda for the forthcoming budget 2007-08’ organised by the Management Association of Nepal (MAN).

Dr Mahat also stated that the budget would principally be based on a common minimum programme (CMP) of the current eight-party alliance of the government.

Besides, reconstruction, rehabilitation and revival of the economy, the budget would also attempt to overcome the current challenges of diverting public investment from consumption to development activities, he said.

“Political consensus on many issues including diverting subsidies to needy sectors as well as for the creation of conducive investment climate is a must,” Dr Mahat said.

Although an all-party consensus is a tricky business, there is a sense among all ruling parties that the economic development is a must to uplift the people’s living standard, he said. He added that the creation of opportunities and effective utilisation of potentials are two vital challenges ahead.

Dr Mahat also reaffirmed that local resources and manpower would be given priority while devising policies and implementing them. “The imported (foreign) or readymade formulae alone cannot help Nepal in transforming itself from its current status of underdeveloped to a developed one,” he said.

He also criticised the international agencies for their attempts to impose their ideas and formulae on Nepal.

Responding to queries, the finance minister admitted that the situation has fairly improved after April last year. He, however, said that the current problem is by and large a political phenomena and a non-fiscal matter.

On behalf of the private sector, Rajendra Kumar Khetan, second vice-president of MAN, gave suggestions for the budget.
He asked the government to ensure peace and security for doing business and operating industries in the country.

Policy initiatives that ensure better investment climate is a key to attract both domestic and foreign investment, while reduction of non-business related risks is also equally important, he added.

Khetan also said that Nepal’s geo-political character must also be taken into consideration, while formulating long-term economic policies.