“We will concentrate our plans and programs to make the upcoming budget result oriented. The budget will try to reduce unnecessary expenditure and bring immediate relief to people,” Baskota told Republica after assuming office on Monday.[break]
Amid widespread speculation that the government is announcing distributive budget under political influence, Baskota clarified that the government would follow the guidelines of National Planning Commission (NPC) -- the apex policy making body of the government - and give priority to the programs included in the three-year plan.
“We are still in the process of preparing pre-course of budget and are busy selecting the sectors that need to be prioritized,” Baskota added.
The white-paper that the Ministry of Finance issued a month ago received criticism from different quarters and economic experts said it was aimed at appeasing political leaders rather than boosting capital spending.
“We won´t misuse of tax payers´ money and foreign assistance that comes in the forms of grant and loan,” Baskota assured.
At a time when speculations are being made on whether or not the government will take action against firms involved in fake VAT receipt racket, secretary Baskota made it clear that the government would leave no stone unturned to punish them as per the existing laws. “We can´t even think of letting those involved in the racket walk away scot-free. They have inflicted a huge loss to national coffer, I assure all that they would be brought to book,” Baskota added.
The finance secretary also expressed commitment to promote good financial discipline and accountability by effectively enforcing Anti Money Laundering Act and other laws that govern the financial sector.
Stating that increasing employment and substituting imports are the major challenges at the moment, Baskota stressed the need to boost industrial production and encourage exports by making timely amendment to the government´s policy on industry and commerce.
Amid widespread criticism on the government policy of providing subsidy on petroleum products, Baskota said continuation of subsidy on petroleum products - for which the nation is entirely dependent on imports - will not be financially prudent. “Our economy can´t withstand the huge financial burden in the name of subsidy on petroleum products, which is getting costlier with every passing day in the international market,” he added.
Baskota claimed that the country was on the path of achieving four percent growth for 2011, slightly higher from the government forecast of 3.47 percent. “To achieve four percent economic growth, we need to focus on development of industry, agriculture and service sectors and bring down double-digit inflation through market intervention,” he said.
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