Senior economists and entrepreneurs have said that the budget for fiscal year 2006-07 lacks specific direction and vision for an overall and sustainable economic development of the country.

Speaking at a pro-budget interaction on Friday, they said that although the budget was released after a historic people’s movement, it does not have ‘special economic proposals’ to turn around the fragile economy.

They said that the budget offered little to encourage private investments and raise household consumptions.

Prof Bishwambher Pyakuryal, president of NEA. (File Photo)

Prof Bishwambher Pyakuryal, president of NEA. (File Photo)
Prof Bishwambher Pyakuryal, president of Nepal Economic Association (NEA), termed the budget for fiscal year 2006-07 as a ‘spineless’ document.

“If we see the breakdown of expenditure under different heads, it seems that budget will prove to be inflationary,” said Prof Pyakuryal.

He also raised question over the capability of state institutions and public organs in creating demand in local level to spend one million rupees allocated for the village development committees.

Binod K Chaudhary, president of Confederation of Nepalese Industries

Binod K Chaudhary, president of Confederation of Nepalese Industries (File Photo)
Likewise, Binod K Chaudhary, president of Confederation of Nepalese Industries, termed the budget as ‘a bits and pieces’ budget that lacks in specific focus and vision.

Chaudhary expressed concern over failure of the government in developing the budget as a common minimum programme of the parties in the government and Maoists, adding, “Rejection of the budget by the Maoists has raised serious question over effective public spending.”

The budget seems more on supporting political stands rather than economy, said Chaudhary.

Former member of the National Planning Commission (NPC) Dr Yuva Raj Khatiwada, commented that the budget has not dealt with the broad aspect of the economy.

He appreciated the budget move to boost the Karnali zone. However, he complained that village development committees are not yet effective enough to use resources being allocated to them.

Dr Khatiwada criticized the budget for not ensuring people’s rights to natural resources, capital, employment and income generating skills, although the budget talked at length about the empowerment.

Radesh Pant, president of Nepal Bankers’ Association (NBA), said that the budget has not been able to identify priority areas. There is nothing concrete for the banking sector, said Pant.

Finance Minister of the coalition government Dr. Ram Sharan Mahat on Wednesday presented a Rs 143.91 billion budget for the fiscal year 2006/07.