Government did not change tax rates for political stability: Minister Pun

KATHMANDU: Finance Minister Barsha Man Pun has said the budget for the fiscal year 2081/82 BS (2024/25) remains objective though significant pressure has been realised in the management of resources.

Proposing to the House of Representatives (HoR) today to initiate general deliberations on the estimations of the government’s income and expenditures for the current fiscal year, the finance minister said the budget is capable of alleviating civic frustrations and counteracting economic slowdown.

“In the course of the budget formulation, the shrinking of resources was realised by all. There were many expectations in the budget. Concerns were whether it would prioritise the need to enable an atmosphere for encouraging youths to seek career opportunities within the country and motivate the private sector. But now reactions are that the budget is objective amidst the shrunken resources. The private sector also dubbed it a balanced one,” he said.

The minister said that the budget is based on the principles and priorities presented by outgoing Finance Minister Dr Prakash Sharan Mahat.

Similarly, changes in tax rates were made on a need basis with in-depth analysis of their relevance. Tax rates were revised at the lowest level and those changes were based on the need basis, he clarified.

According to him, the government did not want to jeopardise political stability by changing tax rates significantly.

The Minister apprised the House that the nation’s economy has gradually improved.  Amidst the shrinking of the national economy, the Central Statistics Office has estimated a 3.9 per cent economic growth rate this year.

Last year, Nepal’s economic growth rate was 1.9 per cent. The scenario suggests that the economy is recovering, but a full recovery is awaited, according to him.