Economists Want Full Budget

Economists on Saturday said that the introduction of an advance expenditure bill rather than a full fledged budget would push the country towards economic crisis.

"An advance expenditure bill will only be sufficient to disburse salaries to government employees," said Chirinjibi Nepal, former chairman of the Security Board of Nepal. "All the development works will come to a halt. The inflation that is hovering around 12 per cent will go up and general public will squarely suffer from huge price hikes."

He also said that an advance expenditure bill for the second time in a row does not bode well for Nepal's image. Failing to make development expenditures and government's declining capacity to use its fund may result in losing Nepal's credibility before the international community. "Nepal will not be able to convince international community in future if the government continuously fails to spend its budget," said Nepal. But economist turned politician and and Madhesi Janadhikar Forum Lawmaker Tilak Rawal welcomes the Maoist concession to allow the the House to resume for the presentation of the advance expenditure bill.

"At least the government will keep functioning, the bureaucracy will move ahead and we will be saved from grinding to a halt," said Rawal, however, he pressed on brining a full budget. "But instead of letting the GDP go down to minus, it will help keep it still, if not push it up" The government must submit its annual budget by July 15 but owing to the House obstruction by the Maoists, since May 5, the current session is yet to be prorogued to allow for the budget session to resume.

"We are running against time. We are hopeful that a deal will be clinched and the UCPN (M) will let the House function for a full-fledged budget," said UML leader Pradip Gyawali. Giving way to present the advance expenditure bill is what the Maoists are terming 'unilateral ceasefire'. "It's up to the government now as to how it takes this up," UCPN (M) leader CP Gajurel said. "We won't let the president present government plans and policies until our demands are addressed. But considering the given situation of deadlock, we have agreed to let the House function for an advance expenditure bill."

The Maoists, said Gyawali, have taken the country hostage putting their unilateral demands. "This is a legitimate government and enjoys the right to table its budget and they should give way for it," Gyawali said.
Source: Ekantipur.com