Finance Ministry’s three months progress: Improvement in economy to country credit rating

Kathmandu: The Finance Ministry has released the details of significant works carried out in three months since the formation of the new government.

The details have incorporated the issues—formation of a high-level economic reform commission to suggest for improving country’s economy, implementation of internal revenue mobilization strategy and completion of preparation of country credit rating.

According to Spokesperson at the Finance Ministry, Mahesh Bhattarai, though there is still challenging in economy, s some improvements is being achieved as compared to past.

He mentioned that self-confidence of private sector has boosted, capital expenditure as well as collection of revenue has increased as compared to corresponding period of last year, interest rate has decreased, share market has become dynamic, foreign exchange reserve as well as remittance has increased in these three months.

Capital expenditure has increased by 65 per cent in three months of the current fiscal year as compared to corresponding period of previous fiscal year while revenue collection up by 13 per cent.

Similarly, the foreign exchange reserve is Rs 2,152 billion, which stands highest so far as well as remittance has increased by 15 per cent. The interest rate has decreased and stands at 6.15 per cent.

The Finance Ministry shared that the 73-point guidelines was issued and made budget implementation further effective. The details mentioned that high-level economy reforms suggestion commission was formed and activities to study in this regard has been initiated to improve overall economy of the country.

A central fast patrolling team was formed and mobilized to control revenue leakage. International Independent Expert Organisation has forwarded activities for sovereign credit rating of Nepal and it is in the phase of receiving the report.

Likewise, a new Insurance Regulations, 2081 has been formulated and it is tabled at the cabinet as well as Internal Revenue Mobilization Strategy, 2081, has already come into implementation.

The Ministry has prepared and implemented the strategy for making the customs evaluation based on real-time transaction value. The Customs Tariff Regulations, 2024 has been formulated and presented before the Council of Ministers for its approval. The Ministry believes that these measures will make the customs process more simplified.

Similarly, during this period a policy on loan and investment in the public corporations has been developed and presented before the Council of Ministers. The Internal Loan Issuance and Management Procedures has been prepared and implemented. The bill for amending the Financial Procedures and Fiscal Accountability Act, 2076 has been tabled in the Federal Parliament.

Likewise, the Ministry stated that the luggage and vehicle scanner machine has been brought into use at the Tatopani Customs Office while the lab module has been initiated at Birgunj Customs Office, Bhairahawa Customs Office and Nepalgunj Customs Office.

The process has been started for providing information on the major phases of the Customs Letter of Credit process to the importers and exporters. The dematerialization of the Citizen Bonds and the Foreign Employment Bonds has been carried out, and the Internal Control System Guidelines, 2024 has been developed and presented before the Council of Ministers for its approval.

Similarly, the Ministry stated that the Guidelines Related to Transfer Price, 2024 has been formulated and implemented while the transactions of more than 400 taxpayers with annual transactions of over Rs 250 million has been tied up in the Central Invoice Monitoring System.

Onsite inspection and monitoring has been carried out at more than 100 industrial establishments manufacturing commercial scale liquor, beer, cigarette, tobacco products, energy drinks and juice for checking the leakage of excise duty.

Initiatives have been made to render the multi-year contracting process more systematic and implementable. The budget allocation and implementation has been made further effective by prioritizing the plans. Works have been started on formulating the Second Financial Sector Strategy.

Likewise, the Ministry stated that works are on regarding the formulation of a new policy on development assistance while the Guidelines on Formulation of New Budget has been developed and implemented.

It is stated that the World Bank, the Asian Development Bank, IMF among the international financial institutions had remarked that Nepal’s economy is improving in two months since the formation of the present government.