Kathmandu (NAN): Finance Minister Bishnu Poudel has said that the policy arrangements need to be corrected to improve the weak state of capital expenditure. Finance Minister Poudel has said that such laws need to be reformed as capital expenditure is weak due to some legal provisions.
Talking to News Agency Nepal (NAN), he said that he was planning to increase capital expenditure by improving such things as some legal regulations or other things have created obstacles in capital expenditure. Similarly, Finance Minister Poudel said that he is in the strategy of increasing the cost by continuing any project by meeting the challenge created by Covid in the current situation.
“We have a separate plan to meet the challenges posed by Covid to improve the situation, which is not currently comparable to the expected capital expenditure,” he said. In addition, some of our provisions are legal or regulatory provisions or other factors that are hindering capital expenditure, we also review the overall situation and move forward with the necessary decisions and make significant improvements in the weak state of capital expenditure, ‘he said.
Finance Minister Poudel said that the current situation of revenue mobilization is also challenging. He said the shutdown had led to a contraction in economic activity and that it had affected production, markets and revenue, adding to the challenge of revenue collection. However, Poudel said that the target is likely to be closer to the target in the first quarter of the current fiscal year.
“Looking at the situation so far, the path of revenue mobilization has become a bit challenging for us,” he said. In between, there was a state of captivity. Economic activity contracted considerably. It is true that it has an impact on production, market and revenue, ‘he said.
“Analyzing the situation for the first quarter now, we are very close to the revenue target. Some are down but we are getting closer. We are prepared and in the mood to take health precautions for the rest of the period, focus on productive activities, focus on employment promotion and take initiatives to overcome the contraction in the economic sector. From that point of view, we are predicting that by the end of the financial year, we will probably meet the revenue target or come very close,” he added.
Likewise, Finance Minister Poudel said that his focus was on adopting austerity measures regarding the expenditure of the government and various state bodies. He also made it clear that he was preparing to move forward strategically on issues such as maintaining austerity in government spending and getting the economy back on track.