KATHMANDU, JAN 15 - The Ministry of Finance has completed the necessary preparations to table the new finance ordinance on Thursday’s cabinet meeting for approval. The ordinance has, among others, proposed to slash the prices of mobile sets and some electronic goods.
The ordinance is a constitutional compulsion to the government as the last year’s ordinance promulgated in July expires in six months.
A source at the ministry said that about a dozen changes have been incorporated in the ordinance, majority of which are related with administrative reforms.
He also said that there would be no major changes in the existing customs rates, though customs duty on mobile sets, some electronic goods and syringe would go down. The move is seen as the reaction to recent Indian "mini budget", which has slashed rates on mobile phones and electronic goods.
Similarly, the government is going to lower its share in the revenue of community forestry, which is expected to resolve a dispute between the government and community forest consumers’ association. The ordinance has also taken some administrative measures to reform the present revenue administration to curb revenue leakages.
The source also said that the ordinance has brought no changes on excise duty and income tax, but a minor change has been made on list of goods under the VAT net. Likewise, no changes have been made on existing ceiling of internal borrowing.
Finance Minister Dr Prakash Chandra Lohani has conformed that the upcoming ordinance would bring no major changes.
"The up coming finance ordinance would a continuation of the programs and policies announced in the budget of last July, with no remarkable changes" Dr Lohani told The Kathmandu Post.
The development expenditure allocated for the current fiscal year has not been changed, but some changes are expected to boost the sluggish development expenditure.
Finance Minister Dr Lohani had presented Rs 102.4billion budget for the current fiscal year. Dr Lohani had allocated Rs 60.55 billion for regular expenditure while on the development front, he had earmarked Rs 41.85 billion.
However, given the current trend, the total development budget for the current year is expected to remain around Rs 35 billion due mainly to continuing violence.Posted on: 2004-01-16 02:56

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