Budget looks ahead

The new budget for the fiscal 2025-26, with its package of 1.96 trillion rupees for expenditure and revenue, appears promising to economy and assuring to private sector. Its target of 6 % growth and limiting inflation to 5.5 %could be called not ambitious. Yet careful steps should be taken to meet both for a number of risks generated by constant political instability, corruption, irrelevant political handling of economic agenda, and international market/aid uncertainty might create various hurdles. The private sector which plays key role in facilitating the government to achieve the budget-mission looks motivated by various provisions made in the budget. The policies in this regard are actually the need of the hour for Nepali economy which is on the eve of moving out of the circle of Least Developed Countries. As a way to prepare for the next status in international arena, the country should have a robust investment climate. Allowing Nepalis to invest abroad is really great; it opens opportunities for diversification and innovation long required for the economy. Similarly mobilizing the private sector for investing some 1.1 trillion rupees in the fiscal year would generate a real production-centric movement in the country’s economic front. It would be really great jump for a country with a very low spending record at present and in the near past. Although the budget has not addressed the problem of unemployment directly it has made ways through which jobs could be expanded or increased. Emphasizing the continuity of long delayed infrastructure projects in the country and opening opportunities for start-ups with new motivational factors, the government seeks to broaden the opportunities of jobs for youths in the country. The budget this time has been well nourished by economics-wisdom; the suggestions made by the High Level Economic Reform Recommendation Commission seem to have contributed to it significantly. This is reflected in, among other things, the way deficit of over 595 billion rupees is being financed. Foreign loans of over 233 billion and domestic borrowing of over 362 billion have been proposed for the purpose. Another highlight of the budget could be found in its special care for not disturbing the spirit of the economy that has been visible in the post-Covid rebound. If the skill of preparing the budget could be transferred to the implementation-phase, Nepali economy would be better off this time next year.