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The government has brought an ambitious budget for the upcoming fiscal year. It aims to spend Rs 1,860.39bn, achieve six percent economic growth rate and contain inflation at 5.3 percent in fiscal year 2024-25. On paper, the budget appears balanced. It focuses on economic reforms and private sector participation, and prioritizes sectors like agriculture, tourism and information technology. However, the real test lies in its implementation as the government has historically struggled in budget implementation.

One of the major hurdles is the ambitious revenue target. The government has set a target of collecting 23 percent of GDP as revenue in the upcoming fiscal year. This seems unrealistic as the government could raise only around 18 percent of GDP as revenue in the current fiscal year. There is nothing wrong in being ambitious. However, setting unattainable goals can undermine credibility and lead to significant deficits. Another challenge lies in the allocation of resources for projects without finalized agreements for foreign aid or investment. 

This tendency of allocating funds based on anticipated deals is one of the reasons behind inflated budget size with limited actual spending. Furthermore, there have been frequent policy shifts in certain sectors, such as tax incentives for billet manufacturing industries and taxation of electric vehicles. Frequent changes in policies can discourage private investment and erode investor confidence, and could derail the government’s efforts to achieve high economic growth.

Strong coordination among various government agencies and three tiers of government is needed for effective implementation of the budget. We have seen how lack of coordination among state agencies can lead to delays, cost overruns and sub-par outcomes. The budget has brought ambitious plans for economic corridors, industrial zones and special economic regions. If we are to transform these ideas into reality, we need to have a strong commitment, consistent policies and a conducive investment climate. The proposed Sovereign Wealth Fund to channel remittances into productive sectors is a promising concept. However, it remains unclear how the government intends to implement it. Moreover, slow capital spending has always been a problem in our budget implementation. The government needs to expedite capital spending if it is to achieve targets set in the budget.

The success of the budget hinges on the government’s ability to prioritize and execute important projects and initiatives effectively. Past budgets have suffered from a lack of focus, slow spending and allocation of resources thinly across numerous projects. Overcoming bureaucratic shortcomings, maintaining policy consistency and fostering an enabling environment for private sector participation will be important for effective implementation of the budget. 

Israeli Ambassador to Nepal, Hanan Goder, has demanded unconditional release of all 125 people, including Bipin Joshi, who was abducted by Hamas militants.  

He made such a demand while addressing a program organized in Kathmandu on the occasion of Israel's 76th Independence Day on Thursday.

Ambassador Goder informed that Israel wants release of those who were held hostage. The program was graced by Vice President Ramsahay Prasad Yadav.

Goder further expressed his commitment that Israel would continue to maintain peace and tolerance in West Asia.

The Ambassador lauded the bold step of the then Nepal government realizing the establishment of diplomatic relations between Israel and Nepal in 1960. He viewed that although Israel and Nepal are geographically distant, the relationship between the governments and the people is strong.

The event was also attended by the Deputy Speaker, lawmakers, leaders of various political parties, former foreign ministers, heads and officers of the diplomatic missions, high-ranking officials of the government, industrialists, businesspersons, media persons and other dignitaries.

On the occasion of Independence Day, photos of the damage caused in Israel by the extremist group Hamas eight months ago were displayed.

A total 1,139 people, including 10 Nepali students had died in the Hamas attack on October 7, 2023. In the attack, the group took hostage 252 Israelis and foreigners.

During the temporary ceasefire, Hamas released 150 people, including 22 foreigners. Bipin Joshi is one of the captives who is yet to be released. 

The government has endorsed a schedule of international visits the President is undertaking in June.

As per Cabinet decision, President Ram Chandra Paudel is scheduled to attend the 112th session of the International Labor Conference to be held in Geneva, Switzerland on June 13.

He will attend the event, leading a Nepali delegation and visit Germany thereafter, according to Minister for Communications and Information Technology, Rekha Sharma.

The government spokesperson further informed that the government decided to allow the presentation of a bill relating to the Tilganga Eye University in the federal Parliament.

The Cabinet endorsed the Forest (2nd amendment) Regulation, 2081.

Decisions on promotion in the judicial service were also made by the Cabinet meeting. 

A Bill aiming to amend the Constitutional Council (Functions, Duties, Powers, and Procedures) Act-2066 BS was endorsed by the State Affairs and Good Governance Committee under the House of Representatives.

A meeting of the Committee today passed the Bill with amendments, according to Committee President Ramhari Khatiwada.

The Bill had been pending for long in the Committee for lack of consensus among the political parties regarding the decision procedures of the Council.

The Committee endorsed a provision allowing the Council to make decisions in a meeting attended by the Council Chair and a 50 percent majority of the total members.

The meeting also discussed the schedule, time, place, and the presence of members in a meeting.

It has endorsed a provision that warrants the Secretary shall inform the members about a meeting date, time, and venue through a letter, which shall also be circulated digitally.

Previously, there was a provision requiring the Secretary to inform Committee members about the schedule, time, and venue of a meeting at least 48 hours before the meeting along with the meeting agenda.

The meeting added a provision requiring any member of the Council to inform the Chair at least 24 hours before in case of inability to attend the Committee meeting.

The Constitutional Council comprises the Chief Justice, the Speaker of the House of Representatives, the National Assembly Chairperson, the leader from the major opposition party, and the Deputy Speaker as its members and is presided over by the Prime Minister.

The Constitutional Council has been formed as per Article 284 of the Constitution. Sub Article 1 states that there shall be a Constitutional Council for making recommendations for the appointment of the Chief Justice and Chiefs and officials of the Constitutional Bodies by this Constitution.

At the beginning of the meeting today, Minister for Communications and Information Technology, Rekha Sharma, expressed her opinions on the Bill on behalf of Prime Minister Pushpa Kamal Dahal.

She said that it is not appropriate to introduce provisions capable of marginalizing an individual holding the executive post and creating an inconvenient atmosphere for performance.

The Nepal Stock Exchange (NEPSE) plunged by 19. 89 points to close at 2,069. 53 points on Thursday.

Similarly, the sensitive index dropped by 3. 90 points to close at 370. 19 points.

A total of 9,864,482-unit shares of 311 companies were traded for Rs 4. 21 billion.

Meanwhile, Nepal Finance Ltd. (NFS), Upper Lohore Khola Hydropower Company Limited (ULHC) and Bhagawati Hydropower Development Company Limited (BGWT) were the top gainers today with their price surging by 10. 00 percent.

Likewise, Pokhara Finance Ltd. (PFL) was the top loser with its price dropped by 10. 00 percent.

At the end of the day, the total market capitalization stood at Rs 3. 28 trillion.

Prime Minister Pushpa Kamal Dahal has said the CPN (Unified Socialist) is in favor of the present ruling alliance.  

Talking to media persons at Biratnagar Airport today, Prime Minister Dahal mentioned that he held talks with CPN (Unified Socialist) Chairman and former Prime Minister, Madhav Kumar Nepal, this morning and received a clear response that the CPN (US) is in favor of the current power equation.

On a different note, he explained that the budget unveiled by the federal government for the upcoming fiscal year 2024/25 has addressed the demand of construction of a ring-road in Biratnagar and a demand for operation of a medical college and other concerns of Koshi Province.

Priority has been given to production, productivity and employment in the budget, the PM added.

PM Dahal, who is also the Chairman of the CPN (Maoist Center), expressed the view that the government would be formed in Madhes Province as per the present ruling alliance.

Prime Minister Pushpa Kamal Dahal has said that the government would implement the concept of Employment Bank to ensure employment to the available human resource on the basis of knowledge, skills and technical expertise.

The PM argued that the Employment Bank will deal with the issue of demand and supply of jobs and entrepreneurship development.

Addressing the Shramadhan Employment Fair today, the PM said entrepreneurship development would be expedited by best utilizing the labor, skills and experiences of the returnee migrants and others staying within the country.

PM Dahal said that the government has made needed provision in the upcoming fiscal year's budget to ensure employment to as many as 100,000 returnee migrants as per their knowledge, capital, skills and technical expertise.

On the occasion, the PM said welfare of the workers will be protected for their good health and wellbeing to align the SDGs and policies and programs of the government.

Similarly, the PM added that the government was working to increase domestic employment through entrepreneurship development by the proper utilization of remittance.

The PM said the country's prosperity and citizens' well being should be promoted by ensuring domestic jobs to the citizens in the long run.

"The government has planned to make the potential job aspirants more competitive by promoting their skills and capacity building. Implementation of employment fair will directly benefit a large number of youths entering the labor market," PM Prachanda said. 

Saying that the prosperity journey could be advanced through employment generation and development of decent labour, the PM appealed to the stakeholders for a joint effort and cooperation to materialize this.

The PM also termed the 'Shramadhan Employment Fair' a meaningful intervention and hoped that the fair will be instrumental to tap into the opportunities in the labor and employment sector and to offer a one-stop solution to the problems.

Likewise, the PM shared that several new programs have been introduced in the new budget for the upcoming fiscal year for employment creation, entrepreneurship development of returnees, revive the agriculture sector and others.

Schools in the Tulsipur Sub-Metropolitan City would remain closed for five days following the excessive heat.

The schools would be closed for five days from May 31 after students started facing health complications due to a rise in temperature for the past few days.

Coordinator of Social Development Committee, Man Bahadur Rawat, said the schools are asked to close their teaching learning activities from May 31 to June 4.

Chief of Education Division of the Sub-Metropolitan City, Chakra Bahadur Bhandari, mentioned that a meeting of the municipal education committee decided to close all community and institutional schools in Tulasipur for five days after the temperature of Dang district was recorded more than 39 degrees Celsius.

Meanwhile, schools operated within Rapti Rural Municipality are closed for two days starting today following the excessive heat.