During the discussion, Mahat briefed the development partners about the priorities of the government and the guidelines and principles of the upcoming federal budget.
Stating that the debt of the government has been increasing, he said that Nepal is very aware of the debt obligations that will be created in the future. In response, the representatives of the foreign development agencies pledged to support the goals and priorities taken by the government. They, however, expressed concern over the reforms in capital expenditure. Since the government has not been able to spend the capital expenditure as allocated by the budget, the funds committed by the development partners are not being mobilized. The development partners also expressed concerns about improving the management of public institutions, reducing duplication of expenditure, preparing a reform plan for internal resource mobilization, etc. According to the press statement issued by the Ministry of Finance, the development partner suggested expanding the scope of taxation, improving low capital expenditure and gradually transforming the informal sector into the formal sector. The development partners also emphasized the need for better planning for projects, prioritizing major reform agendas, improving inter-agency coordination, and making full use of concessional loans.
