Finance ministry starts working on budget for FY 2021/22

The Ministry of Finance seeks suggestions from former finance secretaries to focus on post-COVID-19 economic recovery

KATHMANDU, Feb 18: The Ministry of Finance has started its homework on the preparation of the budget for Fiscal Year 2021/22.

In a meeting organized by the ministry on Wednesday, former finance secretaries suggested focusing on the budget for the coming fiscal year to revive the economy, which is in a crisis due to the COVID-19 pandemic. They also urged the ministry to give special emphasis to infrastructure expansion and capacity building in the health sector.

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Former chief secretary and finance secretary Dr Bimal Koirala mentioned that the announcement of  elections amid the COVID-19 pandemic has added a new challenge to budget formulation for the coming fiscal year. During the discussion, he suggested that it would be appropriate to pay attention to economic indicators and economic issues in addition to various technical issues while formulating the budget. “Only if this can be done, can the economy be restored and developed in a sustainable manner,” he said.

Similarly, former minister and finance secretary Vidyadhar Malik pointed out the need for looking at development as a whole rather than limiting it to a few economic indicators. He pointed out the need for formulating policies and programs for the coming fiscal year to create the necessary environment for the expansion of private investment and increase the contribution of the industrial sector to the economy.

Another former finance secretary Rameshwar Khanal emphasized on building a business environment and improving policy and legal reforms. He opined that it would be appropriate to formulate the budget only by formulating various economic scenarios, drafting policies and programs and evaluating the timeliness of the budget. He said that a budget with reforms is necessary and it is necessary to intensify the expenditure system.

Former finance secretary Dr Shantaraj Subedi said that COVID-19 needs to be taken as an opportunity, adding that it was necessary to bring a budget to address the areas that have been affected by the pandemic.