Saying that non-economic issues were hurting the country’s economy, Finance Minister Dr. Ram Sharan Mahat has called for singular focus on economic issues.

Finance Minister Dr. Ram Sharan Mahat (file photo)

Finance Minister
Dr. Ram Sharan
Mahat
(File Photo)
“All the political forces must realise that economy is the primary issue. It is all about improving investment climate, generating jobs and taking the nation on the path towards prosperity,” Dr. Mahat said, addressing a pre-budget discussion programme organised by Management Association of Nepal on Wednesday.

“It is true that economic statistics are not favourable. But they are all due to non-economic factors. The conflict, social indiscipline, anarchy and demands galore about consumptions have derailed the economy,” he said.

Dr. Mahat said that productions have not increased, there are no new investments and even existing capacities in industrial and tourism sectors are not being utilised.

The Finance Minister said that he will be preparing the budget for the forthcoming fiscal year 2007/08 based on the Common Minimum Programme agreed upon by eight parties.

He urged for consensus on inviting big investments in hydropower sector. “If we can get one big investment then that will open the floodgate. Otherwise, nobody will believe our credibility,” he said.

Pointing out at some positive aspects of economy, Dr. Mahat said that in the eleven months of the current fiscal year, the capital expenditure has increased by 50 percent – compared with the same period previous year. “Revenue has grown consistently at around 20 percent because of which we could manage despite having to dole out Rs 4-5 billion in extra-budgetary topics,” he said.

Earlier, Professor Dr. Madan Dahal presented a paper on “Issues and Challenges” for the coming budget. “Our economy is in crisis. It suffers from conflict, recession and corruption,” he said.

Likewise, industrialist Rajendra Khetan also presented a paper giving suggestions for the coming budget. “Industries are closing down, investment has stopped whereas 200,000 new labour force enters the market every year looking for jobs. Isn’t it contradictory?” he asked. Khetan called for various measures to boost exports and investment.