Nepal's economy a sinking ship - Economy

Nepal’s economy a sinking ship

KATHMANDU, JUL 13 – The government and major political parties came under fire from lawmakers on Monday for failing to bring a full-fledged budget and warned of a serious economic crisis.

Participating in a discussion over the Bill empowering the government to withdraw money from the consolidated fund to carry out regular services and activities in the new fiscal year 2010-11 tabled by the government, they said the country may soon become a failed state.

The failure to unveil the budget within the stipulated time in the last three years shows a total flop of political leadership, they maintained.

“It is an unfortunate that the government could not bring the full-fledged budget. It signals the inability of political leadership and demonstrates their non-seriousness towards the country’s economy,” said Prakash Chandra Lohani, former finance minister and lawmaker of Rastriya Janashakti Party.

Speaking in the parliament, Finance Minister Surendra Pandey said it was not possible to present the full-fledged budget due to a special situation that arose following the resignation of the prime minister.

“We are once again unable to fulfill our responsibility towards people by engaging in political wrangling at a time when national consensus was required for the formulation and implementation of the full-fledged budget.”

Pandey said the agendas of economic development have been ignored as parties could not rise above partisan politics.

UCPN (Maoist) lawmaker Dev Gurung said the special budget was brought to avoid the looming crisis. “The present government is respo-nsible for the financial crisis because it just focused on how to remain in power.” He opposed the Bill proposed by Pandey, saying that the caretaker minister had no authority to bring in policies for new fiscal year.

Ram Sharan Mahat of Nepali Congress said political stability should be maintained to cut the risks that could result in from the declining GDP, increasing trade deficit and capital flight.  Lawmaker Binod Chaudhary a national government is the need of hour.

Source: KOL NEWS