For output-oriented budget!

EDITORIAL

The federal government is at present reported to be intensively engaged in preparation-works for formulating the budget for the fiscal 2025-26 (2082-2083 B.S.). It has organized various consultation meetings in this regard and sought to make the document responsive not only to the latest need of Nepali economy but also to the changing scenario of global geo-politics. People in general expect a lot from the government budget because it arranges resources for meeting their basic and other needs. But history shows that the budget, although designed with financial expertise, has not been able to result in practical accomplishment of its objectives. It generally fulfills the formality of a budgetary process –government proposing a document, parliament deliberating on it and endorsing the same and ministries taking it up for implementation which in reality always raises pragmatic questions. Various provisions in the budget appear rather difficult to pursue for various reasons: they look either too ambitious or too political in nature. It would be great if this time the government pays attention to work out the budget that could be practically applied within the time-frame of the fiscal year. For that the document should have convincing rationale behind all propositions. The fact that the changing global geo-politics does not look friendly for liberal flow of foreign aid this time should also be considered seriously. Alternative way of making up for the same is highly essential. That should be done with urgency and no wishful thinking in this regard would be helpful. All sectors of the economy – investment, labour, industry, agriculture, market price, employment, public service delivery, production, foreign currency reserve, tourism, distribution, transport, money, gold-movement, export, import and technology – are seeking stability. The budget should address each of them. The political pressure on it particularly from the MPs’ constituencies is natural but it should be dealt with a sense of responsibility. Ignoring them would not do; making them pleased through accepting all their schemes would not be economically feasible. A balance should be boldly brought about in it particularly through the modality of output-oriented budget. The same would be instrumental in expanding opportunities for development, investment, employment, agriculture along with much required economic growth with sufficient base for stability and institutional capacity.