Finance Minister discusses budget with international development partners

Finance Minister Dr Prakash Sharan Mahat held a discussion about the budget for the upcoming fiscal year 2080/081 with the international development partners in Nepal today.

On the occasion, Finance Minister Dr Mahat shared about future priorities of the government and the guidelines and principles to be taken by the upcoming budget. He also expressed commitment to make maximum use of the available resources.

Considering the increasing debt of the government, it is a priority to invest in productive sectors to help pay both the principal and interest.

The finance minister on the occasion called for substantial subsidies along with foreign loans including aid to address the impact of climate, which Nepal is not responsible for.

During the meeting, heads and representatives of international development partners assured support to the priorities and programs taken up by the government of Nepal in the upcoming budget, and mobilize foreign aid through Nepal’s national policy, system and structure.

International development partners have suggested that there should be improvements in capital expenditure, management of public institutions, avoiding duplication of expenditure, and preparation of blueprints for internal resource mobilization, among others.

Suggestions were also received to increase investment in health, education, social security and nutrition, expand the scope of taxes, improve capital expenditure and gradually change the informal sector to the formal sector.

Heads and representatives of multilateral development partners such as the World Bank, Asian Development Bank, International Monetary Fund and International Finance Corporation, United States Agency for International Development, Embassies of Japan, Korea, Switzerland, Norway, Finland, Germany and the European Union was present in the meeting.