As capital expenditure has remained just 18 percent of the total budget as of February 22, the new finance minister a study will be held on the performance of ministries in order to stop the tradition of spending late carelessly. Mahat, however, assured the budget for the ministries performing well in terms of expenditure would be increased.
Given the trend of low economic growth over the last six years, he said the government would work for attaining 6-7 percent economic growth. Buoyed by the possible better harvest of paddy and wheat, the Finance Ministry is preparing a budget review that is expected revise the growth estimate at 5 percent this fiscal. The budget for this fiscal year has aimed 5.5 percent growth.
Since the GDP grew 5.6 percent in fiscal 2007-08 when Mahat was the Finance Minister, growth has remained at around four percent on an average until the last fiscal.
Surprisingly, the share market dived on Tuesday although Mahat’s appointment was supposed to lift the secondary market. “The share market has already grown following the formation of the new government was assured,” said Mahat.
The New Finance Minister didn’t clarify whether he would introduce a supplementary budget. “I will first take stock of the situation,” he said.
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