On/Off the Record
By P.R. Pradhan
Now, the number of parties in the ruling alliance has reached 10. The ruling alliance has become successful in electing Ramchandra Paudel for the President’s post and also electing the Vice President by cornering the UML candidates. They also aim to share other positions amicably. However, it will be a Herculean task for Prime Minister Pushpakamal Dahal in giving a final shape to his cabinet as it is difficult for him to satisfy all the partners in the government. Moreover, he should take a vote of confidence by satisfying the partners in the ruling alliance. Among the alliance partners, a sub-group comprised of the Janamat Party, Loktantrik Samajwadi Party and Nagarik Unmukti Party, has already emerged against the Janata Samajwadi Party. Accordingly, the four parties having belief in communism, now in the government alliance, Maoist Center, Unified Socialist Party, Janata Samajwadi Party and Nepal Socialist Party have decided to forge a front immediately after the VP’s election, and if possible, unifying the four parties into one strong socialist party. These efforts are aimed at power sharing and enjoying facilities from the government coffer. Until now, the government doesn’t have a plan at all in rescuing the sick economy.
The global economy is facing a recession. How to save the Nepali economy from the impact of the global economic recession, the political leaders and concerned authorities have not conducted any homework. Priority should have been given to increasing exports and reducing imports by narrowing the trade deficit gap; reducing non-productive sector expenditure by increasing the budget for capital expenditure; using remittance amount in the productive sector rather than spending the revenue in the non-productive sector and importing luxury items from foreign countries; establishing import-substituting industries within the country for discouraging imports are the basic tasks to be done with priority for rescuing and saving the economy from possible global recession impacts. Unfortunately, all the concerned bodies seem to have been sleeping.
All the economists suggest reducing the non-productive sector expenditure tallying the domestic revenue source of the country. They know the sectors from where the non-productive expenditure could be reduced. Since the government adopted the federal structure, it became impossible to meet the increased budget for the operation of the federal structures. Over the past five years, the government’s debt amount has become double. Every year, the debt amount is increasing and it is likely to cross the limit soon. This is a serious threat to the economy and it may meet an accident shortly. Removal of the elephant-sized federal structure is obvious to save the country.
Already, the present political system has become failed. There is a rare chance of the formation of a majority government. Always, there will be a hung parliament and the main business of the political parties will be power sharing. Small parties dominate large parties and economic anomalies will continue further flourishing political instability and chaos. To end such a scenario the present political system must be scrapped.
Presently, the post of finance minister is vacant. UML’s Bishnu Poudel became the finance minister but within 64 days, he was ousted. This is the time to write the budget for the new fiscal year. The government should present the new budget by 15 July but there is no finance minister and the Prime Minister who is currently looking after 16 ministries, has no time to think about the economy as he is busy in power-sharing games.
Shortly, Nepal is going to be upgraded to the status of a developing nation from a less developed country’s status. It sounds good that we have made a big achievement but the fact is that we have destroyed our domestic economic structures. We have introduced the wrong strategy in the name of economic liberalization. The government disposed of many labour-based industries compelling our employees to go abroad for employment. The country has transformed into an import-based country. The government revenue is based on customs duty on imports. If the government fails to meet the target of the import, the government revenue will decline and it fails to manage salaries for the government employees. If such a practice will continue and we don’t give priority to domestic production, our economy will never become strong and self-reliant.
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