On/Off the Record

By P.R. Pradhan Balen Shah, mayor, Kathmandu Metropolis Corporation, is fighting alone with the UML and the Nepali Congress, yet, he is seen as stronger than the two parties in the government. Oddly, to challenge Balen by a sitting Prime Minister K.P. Sharma Oli or the Nepali Congress leaders doesn’t justify. However, Oli and Sher Bahadur Deuba have been worried about the increasing popularity of Balen among the Kathmanduites. UML and NC workers or say their “cyber army” have launched a war against Balen. On the other hand, Mayor Balen’s supporters (alleged to be the cyber army of Balen) have launched a counter-war against the big two parties in the coalition government. In fact, Oli and Deuba are afraid of the anti-government sentiment among the people. When both the leaders attended the Gaura festival at the Tundikhel open theatre, youths chanted slogans against the two leaders saying, “Quit the country!” The Police arrested two youths on the charge of protesting against the two leaders. Now, the two youths have been released on bail. Fueling the fire, Maoist Center supremo Pushpakamal Dahal, who has become a fish without water after losing power, said that the present government may face the fate of Bangladesh and Sri Lanka. Oli replied to Dahal saying that he will not allow Nepal to become another Bangladesh. Although the government is claiming that the country’s economy is on a correction path, the Nepal Rastra Bank is pulling excessive reserves from the commercial bank. Even after lowering the interest rates, businessmen and industrialists are not ready to take new loans. The reason is that there is no demand for the factory products in the market. As the general sector expenditure of the government has enormously increased and the government revenue has not increased, the budget is in a deficit and taking debts every month. Even after taking debt, the government has not been able to pay the dues of the parties even after completing the project works. Mainly, the construction companies are unable to get payments against their bill. When the construction companies didn’t get their payment, they were unable to pay dues to different construction materials producing factories and the factories were compelled to reduce their production cutting down the labor forces. The Nepal Rastra Bank’s sudden decision to ban imports of vehicles and other goods and cut down the ceiling for taking loans for land and shares in the past directly affected the market. This also reflects the unstable policy of the NRB. The Bank had to give alternatives to the businessmen, when it imposed a ban, it directly affected the market. People are confused about whether to invest in the market or not. Therefore, even after low interest rates offered by the commercial banks, locals are depositing money in the banks as they don’t see any option in the market. Investors have lost their belief in the government, which is very serious. When government expenditure increases and cannot collect revenue to match expenditure, it will create a serious problem. The present situation is similar to that, or say, spending high but earning low. A section of “intellectuals” are saying that there is no problem with the system but the problem is bad leadership, however, we believe that the system as well as the political leadership is bad. We have adopted a very expensive system, thus, commoners are compelled to pay around 25 percent tax and also multiple taxations. Besides, while receiving service from the government, we have to bribe the government officials. Excessive taxation has contributed to skyrocketing the market price. A person purchasing a vehicle should pay a tax worth 240 percent, which is odd. These attitudes of the government for squeezing the people have inclined the level of frustration among the taxpayers. It is not a joke that the Prime Minister publicly said, “We cannot increase the salary even to 25 paisa at present.” This is a gesture that the government is facing an acute shortage of funds to spend. The only remedy is to cut down expenditure, which is possible only by scrapping the present political system. Another constitution should be written or restored the 1990 constitution which is accepted by the majority of the Nepali population. The partisan politics should be ended.  Moreover, the corruption control authority should be made powerful so that corruption can be curbed. Otherwise, if the anger of the commoners inclines further, it is sure a Sri Lanka or Bangladesh-like situation is unavoidable.