New Nepali budget will be pro-poor, inclusive: Minister

The budget for the coming Nepali fiscal year (July 16, 2006- July 15, 2007) will be pro-poor and inclusive, keeping in view the current national sentiment, a local media reported Sunday.

"Nepali Finance Minister Ram Sharan Mahat said the budget, to be released in mid-July as usual, would focus on rural people and targeted groups," The Himalayan Times (THT), a local English language national daily, reported.

"We are concerned on the country's dismal revenue growth of 0.5 percent, so the government would consult donors and seek their commitment," Mahat said in an exclusive interview to the THT.

Responding to the question on what he was planning to do to generate resources, Mahat replied, "We had a fruitful discussion with the International Monetary Fund (IMF) for the continuation of Poverty Reduction Growth Facility (PRGF) program, under which bigger amount will be lent compared to previous years."

Earlier, IMF had approved a loan of 72 million U.S. dollars to Nepal.

Mahat attributed the low revenue growth to the closure of industries and strikes. "Without guaranteed peace, revenue collection is bound to suffer," he added.

Mahat said he hoped that the IMF's approval of PRGF would spur support from other donors as well.

The budget cannot be based on speculation and must be backed by concrete commitment from the donors, Mahat noted.

The government was soliciting budget suggestions from all sectors of the society, including the business sector, civil society, journalists, guerrillas, donors and even the general public to make the budget more realistic, he added.

Source: Xinhua