Kathmandu, June 19 : CPN-UML’s Dilli Raj Khanal said that the current fiscal year’s budget, which is fully dependent on foreign aid and loan is likely to ruin the country’s economy instead of contributing to poverty alleviation, employment generation, corruption control, enhancing agricultural production and promoting education sector.

Presenting a proposal seeking the reduction of Rs. 100 from the expenses under the Finance Ministry heading at the House of Representatives today, Mr. Khanal said the regular expenditure is higher than development expenditure, agriculture still depends on rain, more than 10 million people are below the poverty line, about 1.6 million people are unemployed, no programme has been announced for institutional development of local bodies, controlling corruption, establishing good governance and reforming financial institutions.

Earlier, Speaker Taranath Ranabhat had informed the House that RPP’s Pashupati Shumsher J. B. Rana withdrew the party’s proposal for reducing expenses under the Finance Ministry heading.

NC’s Dr. Ram Sharan Mahat stressed the need to prioritize the development projects and manage the expenditures accordingly, streamline the committees and projects under the ministry as all of them do not seem necessary, formulate concrete programmes for financial sector reform and work honestly to meet the revenue collection target.

Rajendra Mahato of Nepal Sadbhavana Party said the budget has undermined the needs of the terai, the suggestions of MPs has been ignored while making the budget, which is only in the interest of leaders and ministers.

Buddhiman Tamang of RPP stressed the need to pay attention to effective implementation of vat, review the interest being charged by financial institutions, promote rural electrification and allocate central level drinking water, irrigation and transport projects in dhading district.

NC’s Ramhari Dhungel, Ram Bahadur Gurung and Romi Gauchan appreciated the aim set by the budget to alleviate poverty by maintaining high economic growth rate and said that despite its big size the budget is quite encouraging.

CPN-UML’s Mahendra Pandey and Chandra Bah adur Shahi said the budget is not likely to promote the interst of the poor, rather it increases the gap between the rich and the poor.

Ananda Prasad Dhungana and Ramesh Lekhak of the Nepali Congress said an economy which fails to provide food, shelter and clothings to the helpless people cannot be called a successful economy, tourism and education sectors have been developed in the wake of restoration of democracy, poverty, unemployment and non-industrialisation are the major problems of the country and the Finance Ministry and the National Planning Commission are not problem-free.

CPN-UML’s Gokarna Raj Bista and Rajendra Prakash Lohani spoke of the need to broaden the direct tax base, computerize the revenue administration office, enlist the tax-payers and take agriculture as a means of removing poverty, adding that given the budget, the whole nation seems heading towards economic anarchism and revenue and foreign aid projects are too ambitious.

RPP’s Netralal Shrestha said that budget appropriations are likely to ensure the interests of the rich, the fund allocated from agriculture roads in Salyan is very low and relocation of the nepal bank ltd from tharmor and Rastriya Banijya Bank from the district headquarters have affected the people.

Dan Bahadur Chaudhary, Bhadra Bahadur Thapa and Krishna Prasad Dahal of the CPN-UML complained that Nepal’s budget is in the hands of the mafias and smugglers, the country is steeped in corruption, the role of the Finance Minsitry is not effective and the budget is not in accordance with the HMG’s policy paper, revenue projection is unlikely to be realized.

Ram Chandra Tiwari, Haribhakta Adhikari and Shivaraj Joshi of the ruling Congress party pointed out of the need to privatize sick industries, remove widespread corruption in the country, develop the system of keeping accounts from the top to the bottom level in a proper and transparent manner, set up new banks in hilly district to mitigate poverty, and solicit people’s cooperation to stop tax evasion in customs points and other businesses.

CPN-UML’s Yog Narayan Yadav, Kunta Sharma and Sherdhan Rai of the CPN-UML observed that budget appropriations for such programmes as education, health and agriculture are not satisfactory, the government should have the courage to make public the report of the Revenue Leakage Investigation Committee, the trend of issuing loans on inadequate collateral should be discouraged, the budget allocated for the local bodies should reach the respective places on time and the budget should be allocated for establishing an Ilaka administration in Bhojpur constituency No. 2.

NC’s Ram Kumar Chaudhary, Keshav Thapa and Hridayaram Thani remarked that priority given to VAT for revenue moblisation, efforts to achieve high economic growth rate, maintain law and order by removing poverty and emphasis given to development projects are laudable, continuation of such programmes as B.P. With the Poor and increase in civil servants salaries are positive aspects of the budget and the budget is likely to achieve the targets of poverty alleviation and high economic growth as targeted by the ninth five year plan.

CPN-UML’s Tukraj Sigdel noted that in the past ten years the economy is not yet able to take a clear line and foreign-dependent economy is being developed, demanding that budget should be appropriated for constructing the khairenitar-bhimad road and a bridge at dulegauda.

NC’s Krishna Kishore Ghimire expressed the view that the budget aims at mitigating poverty, ensuring good governance and controlling corruption, and the increase in civil servants salaries will boost their morale.