Editorial
According to the media reports the government treasury has become empty and it has no funds even to pay salaries to the civil servicemen. Nepal Rastra Bank’s governor Mahaprasad Adhikari believes that the country’s economy is not satisfactory, however, immediately after new Finance Bishnu Poudel took charge, Adhikari said that the economy is taking a proper course. Again, the other day, viewing the global economic scenario, he observed that the main challenge to saving the Nepali economy is keeping it aloof from the global recession, which is in fact, impossible. Nepal has turned into a consumer country as the governments formed after the 1990 political change didn’t give priority to the domestic industries and local investors, instead, it focused on trading business that too, based on imports. Presently, the government is under pressure in maintaining the off-track economy, which is a challenging task.
Economist Dr Dilliraj Khanal believes that the economic indicators are not positive as the government revenue is unable to bear the general sector expenditure set by the government. The government’s capital expenditure in the present fiscal year is just 11 percent. On the other hand, there is an uncontrolled market price hike, whereas, non-productive sector expenditure has been inclined to a higher extent. The private sector is in agitation. A decline in exports, lack of employment opportunities, worst situation of agricultural and industrial sectors, billions of rupees being spent on abroad study and increased expenditure for the functioning of the federal structure are the reasons for mounting pressure on the economy.
Khanal believes that although Nepal has not reached the state of Sri Lanka, yet, its political character is similar to Sri Lanka. Simply, when we spend much than the earnings, surely, we will face an economic crisis and the deficit amount should be raised from domestic or foreign debts. The government’s debts have become double in the past five years and if the debt amount will incline in the same ratio, very soon, the country will reach a state where it cannot pay back debts and interests. Former finance minister Yubraj Khatiwada believes that increasing debt size at an alarming level is a dangerous threat to the economy. Therefore, reducing non-productive sector expenditure is the prime job of the government. Surely, the nation is facing a crisis due to the introduction of the present expensive political system. The leaders of different political parties have confessed that the present federalism cannot be sustained by our economy, perhaps, as they are ashamed for committing a blunder by introducing the present political system, they hesitated to speak against the system that they had introduced. However, they cannot escape reality.
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