Kathmandu, January 23
The main opposition party UML has said that the indicators of the economy indicate a serious setback in the future. Criticizing the government, Chairman KP Sharma Oli said in a statement issued on Sunday that it was not appropriate to accuse the Finance Ministry of being in a policy setting at such a time.
UML has also mentioned that the report of the economic condition of the country made public by Nepal Rastra Bank has presented a worrying picture that the country is heading towards economic crisis. UML alleges that pathetic capital expenditure, low investment, rising unemployment and cuts in development expenditure have negatively affected the campaign to upgrade Nepal from underdeveloped status.
UML has stated that no major development projects have been taken forward in the last six
months. UML has accused Prime Minister Sheba Bahadur Deuba of failing to present any new figures except for some projects started during the previous government even when he tried to present development figures in his address on Friday.
”Instead of arguing for a solution by presenting the challenging realities of the economy, he
seems to be obsessed with covering up artificial figures,” Oli said in a statement. It is beginning to have an effect.”
Considering the fact that consumer price inflation has reached a six-year high (7.11 percent), the UML has claimed in a statement that such inflation was only 2.93 percent in the first five months of last year.
Stating that the prices of ghee, oil, pulses, nuts and petroleum products have skyrocketed, the UML has claimed that the prices of various vegetables from potatoes to turnips have come down by 15 to 40 percent in the same period two years ago. It is alleged that the wholesale price of construction materials increased by 19.34 percent due to wrong policy taken by the government.
The increase in the cost of public infrastructure, less investment in private construction has had a direct impact on overall job creation and the trade deficit has increased by 54.7 percent to Rs 735.49 billion in the first five months of the formation of the government.
The increase in the cost of public infrastructure, less investment in private construction has had a direct impact on overall job creation and the trade deficit has increased by 54.7 percent to Rs 735.49 billion in the first five months of the formation of the government.
These reserves can only support 6.8 months of imports of goods and services. It is also said that foreign exchange reserves have reached the lowest point of the last decade.
Problems in the economy
Remittance inflows have declined by 6.8 percent compared to last year, the document said,
adding that despite the effects of Coving-19, remittance inflows increased by 11 percent in the first five months of last year. According to the UML, the decline in remittance inflows has led to an increase in unauthorized economic activity and increased transactions, including money laundering, as the global economy has improved. The UML alleges that the increase in gold smuggling confirms this fact and at the same time the import of betel nut, chilli, corn, chokdal and other commodities has increased suspiciously.
Stating that regulatory bodies such as the National Vigilance Center, Revenue Investigation
Department and Asset Laundering Department have been mobilized on the basis of vested
interests and political affiliation, UML.
UML has stated that it is unfortunate that the Ministry of Finance, which is supposed to lead
the economic good governance, has been accused of engaging in economic mismanagement through this kind of ‘policy setting’.
In the first five months of the current government, the current account deficit increased by Rs. Considering the fact that the UML has reached Rs. It has stated that it has incurred a loss of Rs. 195.01 billion.
Lack of liquidity in banks has seriously affected the dynamics and expansion of business. The inability to appoint industry, commerce and supply ministers, the inability to hold industrial investment and promotion board meetings for a long time, intimidation and bargaining by the government instead of encouraging and protecting entrepreneurs. UML has written.
Development concerns
The UML has also said that the current government, which has promised to achieve 7 percent economic growth in the current fiscal year and capital expenditure at the rate of 10 percent per month, has spent only 13.44 percent of the last three years.
This is lower than last year (14.4 percent capital expenditure) due to the weak working
environment due to COVID-19. UML has alleged that the current expenditure has increased to 38.15 percent due to the formation of unnecessary structures in the federation and the
indiscriminate increase in the number of ministries in the state to sustain the alliance.
Stating that the government is losing the trust of development partners, UML has criticized the foreign grants for the first six months of the current fiscal year.
During the tenure of the previous government, the budgetary assistance pledged by the World Bank and the Asian Development Bank has not been received.
The last homework of the previous government, the International Monetary Fund (IMF), failed to mobilize budgetary assistance from the World Bank – Finance for Growth, Financial
Federalism Strengthening Program and Green Resilient and Inclusive Development, and
assistance from the Asian Development Bank under Policy Based Lending. In addition to
accepting 400 million in funding, Human Capital Development Projects, Forest for
Prosperity, and forest-based tourism programs have not received the funds they were
promised. The UML alleges that the assistance amount pledged for the implementation of large infrastructure projects has not been received.
Within the next three years, Rs. 80 crores to Rs. 290 million has been released. The
development partner has committed about Rs. UML has criticized the government for being
indifferent in receiving Rs 96 billion in aid. UML has also expressed anger over the cancellation of hundreds of road projects.
To rebuild public school buildings in all but 24 earthquake-affected districts of the country
within the next three years, the previous government allocated Rs 10 billion for infrastructure development under the Presidential Educational Reform Program. Rs. 7 billion and Rs. 7 billion and a total of Rs. 14 billion for construction work, UML has expressed its indignation over the suspension of inviting contracts for such construction work.
”The pace of development has come to a standstill during the tenure of this government, which replaced the popular budget brought by the previous government with a new budget,” Oli said in a statement.
By Karuna Thapa
