KATHMANDU, JUN 28 -
With the government calling the budget session of parliament from July 5, all eyes are on the priorities and size of the government's annual financial plan. Additionally, with only 15 days left for the fiscal year to end, there is huge uncertainty over whether the main opposition party, the UCPN (Maoist), will allow the budget session to run. In such a case, the budget could be introduced through ordinance. 

The Ministry of Finance has said that the budget preparations are almost over. "The budget is almost ready," said Keshav Acharya, senior economic advisor at the Finance Ministry. "The presentation of the new budget will probably take place on July 11 or 12."

With major economic indicators not in sound health, Finance Ministry officials said the upcoming budget would not be expansionary.

They added that the upcoming budget would primarily

be aimed at addressing the current economic problems of the country.

Managing the liquidity crisis and credit crunch and reviving exports are some of the priorities of the budget. The size of the new budget will hover around Rs. 325 billion, according to Finance Ministry sources. Last year, Finance Minister Surendra Pandey had presented a financial plan of Rs. 285.93 billion.

The government is seriously considering setting up a separate entity to oversee and manage state-owned enterprises (SOEs) in the coming budget. "We're thinking of three modalities in this regard," said a senior Finance Ministry official. "It can be in the form of a holding company or an SOE oversight body or authority."

Amid growing grievances of real estate developers and the banking sector, the upcoming budget might relax the provisions on real estate loans. According to Finance Ministry sources, real estate loans will be segregated into four categories.  

With the multi-year contracts of major projects introduced last year paying dividends, the upcoming budget will continue this provision. Making e-bidding mandatory and provision of e-bidding from multiple locations will be introduced in the upcoming budget, according to Finance Ministry sources.

"The provision of e-bidding has saved around Rs. 15 billion and enhanced the efficiency of capital expenditure," said Acharya. Also in the offing are social security schemes and promotion of mass transport in the capital.

Posted on: 2010-06-29 08:15

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