“Some 80 percent of the 3,915 VDCs are facing the impact. Budget delay has not only halted public sector investment, but also badly plugged private sector investments,” said Finance Secretary Rameshwore Khanal.[break]
Under public sector investment, the government has been releasing Rs 2.5 million for each VDC per year as grant. Apart from that, investments are also made separately on sectors like drinking water and sanitation, education, health and roads, among others.
Of the total investment, public investment accounts for 30 percent only.
“But owing to delay in budget, other investments too have not flown at the local level. This has dimmed development prospects and hopes of the people,” said Khanal.
Khanal, who addressed journalists at 11th annual general meeting of Society of Economic Journalists of Nepal (Sejon) on Saturday, also noted that the delay has hurt development aspirations of the people and this could leave deep and long-term scar on the economy.
Referring to long-running political deadlock over budget announcement, Khanal said the country should have a constitutional provision to announce budget on a stipulated date.
“It is very crucial to check the recent adverse trends seen in budget announcement,” said Khanal, referring to the continued failure of the governments in unveiling budget on time over the last three years.
Khanal also stressed the need to give pace to reforms and deepen the spirit of liberal economy, along with restoration of business and investment climate.
Even though the country has liberal business policy, Khanal noted insecurity and cold industrial relations have appeared as major impediments in industrial and economic advancement of the country. “Unless we do away with these problems, the country will not move on high growth path,” he stated.
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