- Monday, 2 June 2025
Kathmandu, May 31: The government has presented its budget (income and expenditure) estimates for the upcoming fiscal year 2025/26 in the parliament. The government was expected to bring the budget with various reform plans to improve the overall economic situation of the country and achieve the expected pace of development. But an average and status quo budget was presented, which has raised questions about what role it can play in improving the economy. In this context, RSS correspondent Hemant Joshi talked to Deputy Prime Minister and Finance Minister Bishnu Prasad Poudel. The excerpts of the interview are as follows:
What are the focus and priorities of the upcoming fiscal year’s budget including the aspects of reforms?
A realistic and disciplined budget has been presented in terms of resource and expenditure management. We have emphasized the optimal use of resources and also tried to be realistic in terms of internal revenue and external debt mobilization. The allocation for capital expenditure has been increased while funds going to the provincial and local levels through financial transfers have been increased. This budget has particularly emphasized on two to three things in the process of giving an impetus to the economy. It has set the path for favorable policy reforms for investment growth. It adopts a policy to attract domestic and foreign investment. It also set a favorable ground for production growth and job creation.
Experts have described this as an average budget, did you not try to intervene or were not able to do?
There is no question of blindly interfering in the name of reforms. The budget has already taken the necessary steps to determine and adopt the right policy. Various policy reforms have been made. A policy of using alternative development finance has been adopted. Improvements have been made in project management and procurement processes. Instead of waiting for the next fiscal year, we have made arrangements to start the procurement process from Jestha 16. We expect the policy of austerity and spending cuts to balance current expenditure.
In terms of taxes, many suggestions were received about the kind of revenue policy to be adopted and we listened to all of them. But I think that the decision that has been made now regarding taxes has increased the trust of taxpayers over the state.
What kind of political pressure did you face during preparation of this budget? Is your budget politically biased?
All the comments and feedback on the budget are welcome. While preparing the budget, my focus was on making the budget realistic and disciplined. Budget preparation is not a matter of pressure but something that is done based on justification. I did not feel any kind of pressure. However, the budget cannot be separated from politics out rightly. The government’s policies and programs should be followed and the budget is based accordingly. Therefore, one cannot say that it is a completely technical manner away from politics. But this budget has come within the limits of the fundamentals norms of a budget.
The private sector seems excited over the budget but there are concerns that the general public was not given due consideration…
We were in a situation where we had to prioritize the needs of the nation more than that of its people. The budget has been introduced keeping this in mind. We were guided more by the need to increase production and productivity, adding impetus to the economy, increasing the economic growth rate and making it sustainable than going for cheap popularity. The budget ensures that economic activities will expand, private sector investment will increase, employment opportunities will rise and infrastructure projects will be completed on time. I am also optimistic that the targeted economic growth will be achieved through this budget.
How is the prioritization and selection of projects different from previous years?
We have always been mindful of the fact that the federal government should present plans and programs that should be approved by the federal parliament. The budget was prepared with a focus on important federal responsibilities. Furthermore, the functions of the provinces and local levels do not fall within the scope of the federal government’s budget. Hence, federal projects costing less than Rs. 30 million were not included in the budget. The message we have put out is that not only the federal government but the provinces and local levels should also come up with a balanced budget.
Furthermore, implementing of the budget should begin immediately. In fact, we should start implementing the budget from today itself. Accordingly, we will immediately proceed with projects the contracts of which can be handed out within the current fiscal year.
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Rainfall likely in Koshi and Madesh provinces
Kathmandu, May 31: Light to moderate rain with thunder and lightning is likely to occur at some places of Koshi Province and few places of Madesh Province along with the hilly regions and at one or two places of rest of the country today.
There are chances of light snowfall at a few places of the high mountainous region of the country. Partly to generally cloudy in Koshi Province, Madesh Province, Bagmati Province and Gandaki Province along with the hilly regions of the country and partly cloudy in the rest of the country.
This is due to the influence of westerly winds and local winds on the western and central parts of the country while most of the Koshi region is influenced by monsoon winds, according to the Department of Hydrology and Meteorology.
The weather will remain partly to generally cloudy in Koshi, Madesh, Bagmati and Gandaki Provinces and the hilly regions of the country and partly cloudy in the rest of the country.
Tonight, light to moderate rain with thunder and lightning is likely to occur at some places of Koshi and Madesh Provinces and few places of hilly regions of the country and at one or two places of rest of the country. Light snowfall is likely at one or two places of the high mountainous region of the country.
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Budget tourism-friendly, says HAN
Kathmandu, May 31: The Hotel Association Nepal, an umbrella organization of hotel entrepreneurs in the country, has welcomed the government’s budget estimates for the upcoming fiscal year 2025/26, as favourable for the tourism and hospitality sector.
Lauding the provision to provide income tax and electricity tariff exemptions to hotels and resorts as for manufacturing industries, the HAN has thanked the government for fulfilling this decades-long demand, describing it as recognition of the contribution made by the hotel industry.
The Association has stated that the initiative taken to extend the stay of tourists and increase their spending in the budget is positive, including the development of additional tourist destinations, and to increase the number of adventure, religious, cultural, film, health, sports and other tourism activities in the bordering areas.
Other positive aspects of the budget include the development of welcome and service centers at border checkpoints, the development of evening heritage trails at UNESCO-listed heritage sites such as Swayambhunath, Hanuman Dhoka, Pashupatinath and Boudhanath, and the development of safe eco-tourism trails at tourist attractions across the country. The HAN has also welcomed the announcement to allow tourists entering Nepal by air or land to bring foreign currency equivalent to five thousand US dollars that can be exchanged in Nepal, which will increase the convenience and spending capacity of tourists.
The association has stated that the budget is a strong point in developing tourism through economic diplomacy, in collaboration with the private sector and non-resident Nepalis, and operating tourism activities using modern technology. The association has also stated that in the context of the 2 percent luxury tax and 13 percent value-added tax on air fares not being removed, domestic tourism services have become expensive and less competitive, and it is necessary to effectively implement the announced tourism development works to make the service quality and competitiveness.
Appreciating the fact that the budget seeks the leading role and contribution of the private sector in achieving the goal of branding Nepal as a safe and reliable tourist destination through the development of existing tourism infrastructure, expansion of quality services, and effective marketing, the HAN has stated in a press statement that the private sector will be encouraged with necessary investment in tourism development and a leading role in international promotion, especially focused on India and China.
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Price of egg increased
Chitwan, May 31: The price of eggs has been increased due to increased demand after fall of production due to rise in the temperature.
The Nepal Layers Poultry Breeders Association has fixed the price of eggs, with effect from today. The farm price of XL eggs (30 pieces) has been fixed at Rs 480.
Similarly, large size eggs have been fixed at Rs 465 and medium eggs at Rs 435.
Association’s chair, Binod Pokharel, said even with the increase farmers have not been able to get the cost price, though the latest increase is some relief to them.
Pokharel said that egg production has decreased by up to 25 percent due to the scorching heat. Chickens eat less feed during the summer season and thereby production of eggs decreases, along with the spread of various diseases.
Five months ago, 40,000 cartons of eggs were produced daily but now it has dropped to around 25,000.
As the number of egg-laying chickens decreases and demand increases prices are expected to gradually increase.
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Demand for Home Minister’s resignation is unfair, says PM Oli
Kathmandu, May 31: Prime Minister KP Sharma Oli has said that it is unfair for the opposition party to demand the resignation of Home Minister Ramesh Lekhak just because a question was raised about an employee.
Talking to media persons after inaugurating the ‘Half Marathon’ organized by Kantipur Media Group here this morning, Prime Minister Oli said that the opposition party should not obstruct the House by making such unjustified demands, when no charges have been filed against Home Minister Lekhak and neither he is under any kind of investigation.
“Last year, when the then Home Minister’s resignation was demanded, the CIB under the Home Ministry was investigating against him. That is not the case now so it is not possible to fulfill the demand of the opposition,” he said.
The Prime Minister also said that he respects the opposition’s right to speak and put forth demands but when making demands or staging a protest it must be done on justified grounds. “The opposition does not like this government, so it would not be a surprise if they increase their demands and demand the resignation of the government itself,” Oli said.
He also suggested party leaders to address any differences within the party, and not disturb others by bringing the dispute in public.
When asked about the next FY budget presented before the parliament, Prime Minister Oli said the budget was introduced in a realistic and feasible manner. “We don’t want to be populist but instead carry out substantial work. Bringing a budget by going beyond reality means taking the economy on the path of destruction.”
As lot of work has been done in infrastructure development, we have now focused on social security, good governance, and development.
On the occasion, Prime Minister Oli also thanked Kantipur media group for organizing the half marathon, while observing that sport is a mean to connect everyone and increase activity.
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Ambassador Nepal presents credentials to President of Malta
Lisbon (Portugal), May 31: Nepali Ambassador to Spain and Non-Resident Nepali Ambassador to Malta Shanil Nepal presented his credentials to President of Malta Myriam Spiteri Debono.
Ambassador Nepal presented his credentials to President Debono during a special ceremony organized at the Presidential Palace in Valletta, the capital of Malta, on Thursday.
On the occasion, Ambassador Nepal paid a courtesy call on President Debono and discussed bilateral friendly relations, enhancement of cooperation between Nepal and Malta, according to the Nepali Embassy in Spain.
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