Nepal: Budget and Economic Development
Dr Surendra Bhakta Pradhanang
July 24, 2009
The annual budget is the debit and credit balance concentrated to a statement of government´s income and expenditure. But there is a need of a brilliant economist´s vision and wit on budget planning and strategy for microeconomics stability and national development. One can be assured as productive in term of economic values when the budget planning will be fully exercised in favor of people and country. The government of Nepal has recently presented the new budget amounted to Rs 285.92 billion for Fiscal Year 2009/2010 in Kathmandu.
Since the end of people´s war held by Maoists, the political economy of Nepal has to be timely shaped in a good order and fully people – oriented budget from all the angle of vision. The lesson has to be learnt by all the political parties and politicians of Nepal from the result of cold war and disputes at all. Historically, the collapse of the Soviet Union and end of East – West rivalry in 1989 resulted big battle deaths. Similarly, the cold war in Nepal ruined peace and development and progress of people and country except than battle death after death.
War is hell. It has long been said that war is evil death. Choosing hell, hellfire, hellhole and hellish state of mind and difficulty through battle are worse to man and society.
The UML - led government mislead the situation and the Finance Minister misread his readings in budget. Those splashes we hear are rat jumping off a sinking ship. The government is now talking about the valued added tax which is like a bunch of poker players playing with other people´s money. The economic climate has blinded the developed world to massive suffering and seeds of global unrest in fact.
The composition of national budget ought to be economically revolutionized with village tourism development thought and agro- tourism perspective planning and development infrastructures. The budget is not in term of nation´s need and demand of the people and country. Although the present budget tried to focus the problems and challenges of the national economy, the objectives of the budget are only show-piece and paper reactionaries which are not meeting to the government´s commitment or any determination.
However, there are some positive sides of budget in tourism economic growth such as Birat area, Bideha area, Sahales area, Simroun area and Lumbini area in Terai Madhes and Karnali-Chisapani area will be additionally exposed and developed as tourism spots. Pathivara, Barah area, Pasupatinath, Manakamana, Muktinath, Sorgadwari and Mallikarjun will be identified as seven Spiritual Destinations. Private sector will be promoted to construct traveler guest house to facilitate spiritual tourists in Barah area, Gosaikunda, Khaptad Lake, Tribeni, Chhanna Marga and Resunga Pokhari area. Specially, Muktinath area to Damodar Lake will be developed as tourist destinations. A feasibility study is planned to operate Cable Car in Muktinath area. A special plan is initially focused for physical infrastructure developments at Lumbini.These are interesting to hear budget.
Actually; the concept of ´Village Tourism Road´ has to be newly introduced by the government. But it failed to take into consideration. To develop and promote the crying need of Village Tourism in Nepal, the UML- led government is salient without plan and strategy in operation.
Ring road construction working plan at Doti- Achham and Bajura-Bajhang of Khaptad area seem encouraging. Route to touch the Khaptad area of Bajhang, Doti, Achham and tourism trekking route of Bajura and Khaptad Surma, Khaptad Ure glen, Khaptad Ramarosan trekking route are good to hear improvement in budget planning. "Art Village" development in the area of Maithili, Bhojpuri, Tharu, Lapcha, Limbu and Dhimal is good to hear in budget planning. But there is no possibility to develop without the introduction of village tourism concept propounded by Dr Pradhanang of Nepal in those areas.
Installation work of new radar in Tribhuvan International Airport is initiated to make the flights reliable and systematic. Runway is expanded to minimize the air traffic problems in Tribhuvan International Airport. Construction of International Airport in Nijgadh of Bara is started with high priority. Simultaneously, the work of regional airport at Pokhara and Lumbini is initiated. Regional and other important airports from the view point of tourism development are developed in hill and himali area, A amount of 250 million is allocated for up grading all airports of Rajbiraj, Janakpur and Humla, Mugu, Kalikot and Dolpa of Karnali zone. The amount of Rs. 100 million is budgeted for extension of Dhangadi airport. Besides, airports of Simara and Dhangadi are developed and equipped for landing and take off during night time.
Nepal Tourism Year 2011 with the aim of bringing 10, 00,000 tourists into Nepal through the campaign of "Nepali Temperament, Welcome and Hospitality of Guest" slogan is the same as the previous Visit Year 1998 which is failed plan and out of fitness in Village Nepal. The planning and strategy ought to be timely changed as per the situation and demand of the people in this regard. Dr Pradhanang who had already given the concept of ´Visit Village of Nepal ´ is good and appropriate to village Nepal .Under this program, package tours have to be developed on village tourism concept propounded with the partnership program with institution of tourism sector and dissemination as well as publicity task are also necessary to carry out. An interaction with all villagers, tour operators and climbers of Mt. Everest region is necessited to conduct. Nepal is developed as an attractive venue of international as well as regional convention center too.Despite; Nepal has to be developed as an international tourism village center.
Tourism Service Fee from July 16, 2009 has been removed to conduct various national programs. Instead, Nepal Tourism Board may include Rs.1000 per passenger at air ticket itself effective from that date with airline companies. For Paragliding and Rafting development plan, Paragliding at Gheralik of Arghakhanchi and feasibility study of Rafting program are considered at Balefi to Chatara and Ramdighat to Narayanghat
Market oriented economy is initiated to develop modern sector so as the Government would be committed to create environment for its expansion as regulator, facilitator and developer for leadership and helper to private sector.
GDP growth rate is registered at 3.8 % at basic price and 4.7 % at produces´ price while the annual inflation rate has already reached to 13 % .The balance of payment and foreign currency are showed as satisfactory. The balance of payment is registered to be a surplus of Rs 30 billion at the end of the current fiscal year. Besides, revenue collection is planned to Rs 176 billion, which is 24.11 % more than the last year.
The budget has some basic thoughts as public – private partnership, increase of internal resource, economic relation with neighboring countries, macroeconomic stability and minimization of Bandha and strikes. But there is no any control and monitoring mechanism introduced by the budget.
The government has targeted to achieve economic growth at 5 % and to limit inflation rate at 7 % in the national economy when the Nepalese people are presently facing against 13 % inflation rate. The subsidy in chemical fertilizers has been planned to back to the previous budget trend set .At the first time, the budget has been planned by giving the name of consumer protection menu for Nepalese people in consumer market, which is welcome and good to consumer associations of Nepal. But the consumer protection mechanism is nil in this respect.
The budget is, no doubt, populist from the standpoint of party politics and political crisis in Nepal. Still the market price of consumption goods has undesirably skyrocketed in the Nepalese economy which affects general public in their livelihood negatively. Every political party of Nepal must be free of selfishness and dirty politics in formation of annual budget planning and implementation. In fact, the budget can not be successfully come to the public until to end individual selfish desire and malpractice of so-called political leaders or politicians in Nepal. The political economy of Nepal has badly gone to dirty politician´s basket which is a deadly poison to the national economic development and Nepalese society. The trend ´might is right ´is not a good political phenomenon in practice for sustainability of democracy.
We choose a hope for changing Nepal and politician´s mentality in Nepal as a crying need of people and county. A bad politics is meaningfully for bad people. But the good people always need the good politics and public focused political economy in peace.
Since the end of people´s war held by Maoists, the political economy of Nepal has to be timely shaped in a good order and fully people – oriented budget from all the angle of vision. The lesson has to be learnt by all the political parties and politicians of Nepal from the result of cold war and disputes at all. Historically, the collapse of the Soviet Union and end of East – West rivalry in 1989 resulted big battle deaths. Similarly, the cold war in Nepal ruined peace and development and progress of people and country except than battle death after death.
War is hell. It has long been said that war is evil death. Choosing hell, hellfire, hellhole and hellish state of mind and difficulty through battle are worse to man and society.
The UML - led government mislead the situation and the Finance Minister misread his readings in budget. Those splashes we hear are rat jumping off a sinking ship. The government is now talking about the valued added tax which is like a bunch of poker players playing with other people´s money. The economic climate has blinded the developed world to massive suffering and seeds of global unrest in fact.
The composition of national budget ought to be economically revolutionized with village tourism development thought and agro- tourism perspective planning and development infrastructures. The budget is not in term of nation´s need and demand of the people and country. Although the present budget tried to focus the problems and challenges of the national economy, the objectives of the budget are only show-piece and paper reactionaries which are not meeting to the government´s commitment or any determination.
However, there are some positive sides of budget in tourism economic growth such as Birat area, Bideha area, Sahales area, Simroun area and Lumbini area in Terai Madhes and Karnali-Chisapani area will be additionally exposed and developed as tourism spots. Pathivara, Barah area, Pasupatinath, Manakamana, Muktinath, Sorgadwari and Mallikarjun will be identified as seven Spiritual Destinations. Private sector will be promoted to construct traveler guest house to facilitate spiritual tourists in Barah area, Gosaikunda, Khaptad Lake, Tribeni, Chhanna Marga and Resunga Pokhari area. Specially, Muktinath area to Damodar Lake will be developed as tourist destinations. A feasibility study is planned to operate Cable Car in Muktinath area. A special plan is initially focused for physical infrastructure developments at Lumbini.These are interesting to hear budget.
Actually; the concept of ´Village Tourism Road´ has to be newly introduced by the government. But it failed to take into consideration. To develop and promote the crying need of Village Tourism in Nepal, the UML- led government is salient without plan and strategy in operation.
Ring road construction working plan at Doti- Achham and Bajura-Bajhang of Khaptad area seem encouraging. Route to touch the Khaptad area of Bajhang, Doti, Achham and tourism trekking route of Bajura and Khaptad Surma, Khaptad Ure glen, Khaptad Ramarosan trekking route are good to hear improvement in budget planning. "Art Village" development in the area of Maithili, Bhojpuri, Tharu, Lapcha, Limbu and Dhimal is good to hear in budget planning. But there is no possibility to develop without the introduction of village tourism concept propounded by Dr Pradhanang of Nepal in those areas.
Installation work of new radar in Tribhuvan International Airport is initiated to make the flights reliable and systematic. Runway is expanded to minimize the air traffic problems in Tribhuvan International Airport. Construction of International Airport in Nijgadh of Bara is started with high priority. Simultaneously, the work of regional airport at Pokhara and Lumbini is initiated. Regional and other important airports from the view point of tourism development are developed in hill and himali area, A amount of 250 million is allocated for up grading all airports of Rajbiraj, Janakpur and Humla, Mugu, Kalikot and Dolpa of Karnali zone. The amount of Rs. 100 million is budgeted for extension of Dhangadi airport. Besides, airports of Simara and Dhangadi are developed and equipped for landing and take off during night time.
Nepal Tourism Year 2011 with the aim of bringing 10, 00,000 tourists into Nepal through the campaign of "Nepali Temperament, Welcome and Hospitality of Guest" slogan is the same as the previous Visit Year 1998 which is failed plan and out of fitness in Village Nepal. The planning and strategy ought to be timely changed as per the situation and demand of the people in this regard. Dr Pradhanang who had already given the concept of ´Visit Village of Nepal ´ is good and appropriate to village Nepal .Under this program, package tours have to be developed on village tourism concept propounded with the partnership program with institution of tourism sector and dissemination as well as publicity task are also necessary to carry out. An interaction with all villagers, tour operators and climbers of Mt. Everest region is necessited to conduct. Nepal is developed as an attractive venue of international as well as regional convention center too.Despite; Nepal has to be developed as an international tourism village center.
Tourism Service Fee from July 16, 2009 has been removed to conduct various national programs. Instead, Nepal Tourism Board may include Rs.1000 per passenger at air ticket itself effective from that date with airline companies. For Paragliding and Rafting development plan, Paragliding at Gheralik of Arghakhanchi and feasibility study of Rafting program are considered at Balefi to Chatara and Ramdighat to Narayanghat
Market oriented economy is initiated to develop modern sector so as the Government would be committed to create environment for its expansion as regulator, facilitator and developer for leadership and helper to private sector.
GDP growth rate is registered at 3.8 % at basic price and 4.7 % at produces´ price while the annual inflation rate has already reached to 13 % .The balance of payment and foreign currency are showed as satisfactory. The balance of payment is registered to be a surplus of Rs 30 billion at the end of the current fiscal year. Besides, revenue collection is planned to Rs 176 billion, which is 24.11 % more than the last year.
The budget has some basic thoughts as public – private partnership, increase of internal resource, economic relation with neighboring countries, macroeconomic stability and minimization of Bandha and strikes. But there is no any control and monitoring mechanism introduced by the budget.
The government has targeted to achieve economic growth at 5 % and to limit inflation rate at 7 % in the national economy when the Nepalese people are presently facing against 13 % inflation rate. The subsidy in chemical fertilizers has been planned to back to the previous budget trend set .At the first time, the budget has been planned by giving the name of consumer protection menu for Nepalese people in consumer market, which is welcome and good to consumer associations of Nepal. But the consumer protection mechanism is nil in this respect.
The budget is, no doubt, populist from the standpoint of party politics and political crisis in Nepal. Still the market price of consumption goods has undesirably skyrocketed in the Nepalese economy which affects general public in their livelihood negatively. Every political party of Nepal must be free of selfishness and dirty politics in formation of annual budget planning and implementation. In fact, the budget can not be successfully come to the public until to end individual selfish desire and malpractice of so-called political leaders or politicians in Nepal. The political economy of Nepal has badly gone to dirty politician´s basket which is a deadly poison to the national economic development and Nepalese society. The trend ´might is right ´is not a good political phenomenon in practice for sustainability of democracy.
We choose a hope for changing Nepal and politician´s mentality in Nepal as a crying need of people and county. A bad politics is meaningfully for bad people. But the good people always need the good politics and public focused political economy in peace.
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