Kathmandu. Finance Minister Dr. Swarnim Wagle has said that the budget for the coming fiscal year presented by the government will lay the foundation of policy reforms in the country’s economy and give hope to the younger generation. Finance Minister Wagle made the claim while speaking at the ‘Post Budget’ discussion organized by the Association of Economic Journalists of Nepal (NAFIZ). 

He said that the budget is focused on creating an environment for the newly completed students to earn up to one lakh rupees a month with self-respect in the country. 

Similarly, he has termed the income tax exemption up to Rs 10 lakh as a ‘revolutionary’ step . Finance Minister Wagle expressed the belief that this arrangement would increase the flow of money in the market and make the economy dynamic. 

He clarified that the policy has been taken to convert savings into investment by reducing the 39 percent tax levied on the higher income group by 10 percentage points.“Tens of thousands of Nepali businessmen are facing problem of old tax arrears,” he said. According to Wagle, the budget has made a provision for a new start (rejuvenate) by paying 1 percent administrative fee. 

The budget includes an action plan to hand over a portion of Nepal Telecom’s shares to the general public, to strengthen the Ra striya Banijya Bank and to restructure the Nepal Airlines Corporation (NAC) and Nepal Electricity Authority .He has expressed his commitment to complete these works this year. 

Similarly, he said that instead of relying only on traditional sources of credit, resources will be raised for large infrastructure through ‘Alternative Development Finance Bill’.Bonds, Diaspora Bonds and Thematic Bonds will be issued. The Finance Minister also said that there are plans to make strategic investments in the model of ‘hedging’ policy and sovereign and fund for reducing the risk of foreign exchange.

On the other hand, the government will not back down from the decision to levy VAT on electricity on the other hand, but alternatives are sought so that the burden does not fall on the consumers. Wagle has clarified. The Finance Minister said that the price will be adjusted through the Electricity Regulatory Commission from July 1 or the limit of free units for the poor will be increased to provide relief to the consumers.