Budget 2016/017 draws mixed reaction from economists

Kathmandu / May 28: Various youth economists have expressed their concern over the newly unveiled budget estimates for fiscal year 2016/017 for they claimed that it fails to increase investment in the productive sector although the budget introduced is ‘colossal’.

Finance Minister Bishnu Prasad Poudel presented the budget, first since promulgation of the new constitution on September 20, 2015, in the meeting at the Legislature-Parliament on Saturday.

They argued that the investment in the commercial farming productive sector and manufacturing sector would not be increased with the budget estimates tabled in line with the newly unveiled government policies and programmes for fiscal year 2016/2017.

Economist Radheshyam Malakar stated that the investment in the agriculture and hydro power sector, as stipulated in the budget, helps create jobs and productive economy.

He observed that the newly unveiled budget was not focused on important national agendas as the sustainable development, implementation of new national statute and undertaking of big projects.

Economist Malakar, a PhD candidate in economics from Canada, is currently in Nepal.

Similarly, economic expert Bhojraj Dhakal, who is a professor with the Makawanpur Multiple Campus, Makawanpur district, termed the budget a ‘jumbo’ one. He was of the view that the government should not introduce big budget at the time the country’s economy is weak.

“When a massive budget is unveiled, it creates a situation wherein the country has to depend on foreign loan and function in line with the donor countries’ terms and conditions,” he added.

Likewise, stating that economic development can’t be attained without adequate capital expenditure, Sunil Kharel pressed for proper utilization of the money in the state coffer as he argued that the country does not have a dearth of money.

Kharel remarked that the budget was not focused in encouraging the investors in the country by establishing one door policy to attract foreign investment.