SANGAM

Pandey unveils 285.9 billion budget
By Sangam Prasain

Kathmandu, July 13 - Finance Minister Surendra Pandey Monday unveiled the budget estimates of Rs. 285 billion 930 million for the fiscal year 2009/10.
Of the total budget, Minister Pandey has proposed Rs. 160.63 billion (56.18 per cent) general expenditure and Rs.106 billion 284.8 million (37.17 per cent) capital expenditure. Likewise, principal repayment is estimated to be Rs.19 billion 12.8 million (6.65 per cent).
The proposed expenditure is higher by 33.87 per cent than the revised estimates of the current fiscal year. The capital expenditure has been increased by 44.98 per cent, recurrent expenditure by 31.58 per cent and principal repayment by 4.53 per cent than the revised estimates of the current fiscal year.
Of the total expenditures, Rs. 135.58 billion (47.42 per cent) will go for general administration and Rs. 150.34 billion (52.58 per cent) for development related expenses.
Of the total required resources, Rs. 161.73 billion will be borne from the current sources of revenue. Out of the total foreign assistance of Rs. 78 billion 516.2 million, Rs. 56 billion 955.6 million would come in the form of foreign grants and Rs. 21.56 billion as loans. The budget will have a deficit of Rs. 46 billion 340.02 million, Pandey told the legislative parliament.
Minister Pandey said that the government would generate an additional Rs 15 billion 430.02 million through new sources of revenue mobilisation and there will be a net deficit of Rs. 30.91 billion which will be financed through domestic borrowings
The budget projected a growth rate of 5.5 per cent for the coming fiscal year. The growth rate in agriculture sector is expected to be at 3.3 per cent and the non-agriculture sector at 6.6 per cent. It is estimated that inflation rate will be around 7.0 per cent.
Pandey said the government would run the economy on socialism- and people oriented basis for the sake of high economic growth and distributive justice. All the three sectors of the economy -cooperatives, private and public sectors will have significant role to play.
Structural change in the economy would be initiated with commercialization of agriculture, industrialization based on agriculture, forestry and available minerals, hydroelectric power generation and its commercial use and also focusing on the new dimensions of tourism development by relinquishing subsistence agriculture and tax-benefits processing industrial structure.
Internal source will be increased and external dependency will be reduce for the sake of huge investment required to achieve high economic growth rate. Investment friendly environment will be created for the promotion of private sector investment by removing all kinds of policy and infrastructure oriented obstacles.
For the time being, emphasis will be given to mobilize foreign assistance for large physical and economic infrastructure of national priority, rural infrastructure, agriculture, social sector and inclusive development. In the long run, emphasis will be given to build a self-reliant national economy without the need of foreign assistance.
Political initiatives will be taken to minimize actions like Bandh, strike, highway obstruction, road bloc and Ghearao that obstructs the economic stability.
The objectives of the budget are to facilitate promulgation of the new constitution as per the people’s expectations and bring the peace process to an end; to create employment by encouraging roles and investments of the cooperative, private and public sectors; and to emphasize the development of large physical and economic infrastructures for rapid economic growth.
It also aims to ensure relief for conflict affected people control price and facilitate the supply system.
The budget has set priorities to help draft the constitution by implementing the Comprehensive Peace Accord and bringing the peace process to an end; to maintain law and order by removing impunity; and to increase investment for employment oriented inclusive development.
It also accords priority to implement targeted programs for the uplift and development of the disadvantaged groups, communities and geographical areas; to consolidate physical and economic infrastructure; commercialize and modernize agriculture for the transformation of the economy; and to accelerate social development by increasing investment in education, health and drinking water and sanitation sectors.
Besides, it recognizes the need to improve power generation and distribution; to mobilize the international assistance for the promotion of national interest; and to let the people feel the existence of a responsible government by improving public administration and service delivery.
Major sectoral policies and programmes of the budget
State Restructuring and Institutional Development of Federal Democratic Republic
Mutual economic and social inter-relations among hills, mountains and Terai-Madhesh will be strengthened. In order to facilitate the Constituent Assembly for the institutionalisation of the federalism, cooperation will be extended to the works of the State Restructuring Commission.
A People’s Movement and Martyrs Memorial Museum will be established in Gokarna, Kathmandu. A national ethnic museum will be established in Champadevi, Kathmandu. Planned development of the Narayanhiti Museum will be made. The statues of Terai-Madesh martyrs and martyr memorial parks will be established in memory of the martyrs of the Madesh movement.
For the judicial sector, government has allocated Rs. 1 billion 410 million to cooperate in effective implementation of the judicial performances as per the strategic reforms plan prepared by the independent judiciary.
Sustainable Peace, Relief, Rehabilitation and Reconstruction
Until the completion of reconciliation and rehabilitation works, government has continued the livelihood and monthly allowances to the Combatants of the Maoist Army staying in temporary camps.
Peace and Security: Expectations of People
A bio-metric smart card containing a picture will be distributed to all Nepali citizens as a national identity card, which can also be used for election purpose. This card will be arranged for drawing social security allowances, including elderly allowance, from any bank.
To materialize the spirit of the theme- "Peace and Security: Expectations of People", security system will be made capable, efficient and effective, and, thus, impunity will be ended. A separate Bureau will be established to carry out investigation and analysis of serious and organised crimes. Similarly, necessary arrangement will be made for industrial security.
Social Security and Inclusive Development
The government has given continuity to the social security allowances currently being provided to the elderly citizens, single women, endangered ethnic group, and, partially and fully handicapped individuals.
For this, government has scaled up the allowance of Rs. 500 being given to the Raute ethnic group to Rs. 1000. Raute ethnic group, if they wish, will be permanently settled in appropriate places. Government has allocated Rs. 7 billion 780 billion for social security.
Poverty Alleviation and Inclusive Programme
Scaled-up investment in local level programmes is essential for poverty alleviation and inclusive development. For this, nine programmes consisting of balanced education for all and literacy, health, safe drinking water, small irrigation, small and cottage industries, skill-oriented trainings and employment, intensive plantation of forestation, small hydroelectricity and local roads will be effectively implemented through community.
Poverty alleviation programme currently operational targeting at the socially and economically backward community and households below poverty line will be expanded to all the districts. For this, there is Rs. 2 billion 720 million.
To bring about improvement in the condition of child-care in poor and highly backward families, "Child Protection Grant" of Rs. 200 per month per child under the age of 5 for up to 2 children of the each poor Dalit family and all families in Karnali Zone will be provided from mid-October 2009, which has been allocated Rs. 720 million.
Society still rejects inter-cast marriage between dalit and non-dalit and the initial days of the couples thus married are normally tough. To encourage such inter-cast marriage, the government will provide a grant of Rs. 100,000 to the newly married couple within 30 days of marriage registration with the District Administration Office.
Similarly, to encourage widow-marriage, the government will provide a grant of Rs. 50,000 to the couple within 30 days of marriage registration with the District Administration Office. To increase the access of the widows to employment and other opportunities and to review the future structure of allowance, data of the widows will be collected.
Social and Cultural Preservation
Language, literature, art, music and culture of all ethnicities and janajatis will be preserved, maintained and promoted. Preservation of traditional monasteries, temples, mosques and ritual places will be continued with reaffirmed additional priority.
In the process of awarding the person who significantly contributed in the development of Maithali language, literature and culture, government has allocated Rs. 10 million as a revolving fund for "Mahakabi Vidhyapati Puraskar Guthi".
Women Development and Social Empowerment
Government has continued the concept of gender responsive budget to enhance gender equality, which has been proposed Rs. 49 billion 450 million, a 17.3 percent of total budget for the program which will directly benefit the women in the next year.
Youth Mobilization for Nation Building
Under National Youth Mobilisation Program, youth partnership, youth experience exchange and awareness campaigning program against addictions will be carried out. National Youth Council will be formed. For this, there will be Rs. 63.6 million budget.
According to the policy to encourage sports talent, the provision of life-long subsistence allowance will be made to gold medalist in Asian and Olympic games. Government has allocated Rs. 273.2 million budgets for National Sports Council to carry out the activities related to sports development.
Transformation in Agriculture for Economic Prosperity
Since agriculture sector is the main pillar of income and employment of majority of Nepalese people, program with the campaign "Agriculture for subsistence to Agriculture for sustainable development" will be carried out. There is Rs. 8 billion 60 million in the agriculture sector. And Rs. 1 billion 500 million to provide subsidy to chemical fertilizer.
The Government of Nepal will bear necessary expenses for commercial identification of Nepalese tea and coffee, which have distinct identification in international market, in the name of "Nepal Tea" and "Nepal Coffee" in international market.
"Sugarcane Board" with the participation of farmer themselves will be constituted to encourage sugarcane production, to increase productivity and to empower farmers.
Irrigation for increased agricultural production
A sum of Rs. 7 billion 950 million has been allocated for the entire irrigation sector, which is an increase of 35.76 per cent as compared to the revised estimate of current Fiscal Year.
Forest conservation and development
Government has proposed a sum of Rs. 3 billion 440 million for the forest conservation and development sector which is an increase of 37 per cent as compared to the revised estimate of the current Fiscal Year. A 22.3 million plants of multi- purpose species, herbal plants, cane, bamboo and Sajiwan will be planted to conduct the afforestation program as a campaign.
The opportunity of "Green Employment" will be created in rural area through implementing forest entrepreneurship program based on community owned forest resources with special priority. The area of community forest and leasehold forest will be expanded.
"Tourism Development for Wider Economic Growth"
Preparation will be made to observe Nepal Tourism Year 2011 with the aim of bringing 1 million tourists into Nepal through the campaign of "Nepali Temperament, Welcome and Hospitality of Guest" slogan. Under this program, package will be developed to attract tourists with the partnership of successful organization and institution of tourism sector and dissemination as well as publicity task will be carried out.
Construction of International Airport in Nijgadh of Bara will be started with high priority. Construction work of regional airport at Pokhara and Lumbini will be initiated.