Discussions with NRB ongoing to reduce the bank’s interest rate: Finance Minister Dr. Mahat

KATHMANDU: Dr. Prakash Sharan Mahat, Finance Minister, has stated that the government’s tax collecting status is poor.

Speaking at the Economic Journalists Association (Nafiz) debate program on Friday, Finance Minister Dr. Mahat stated that the country’s tax collection aim is not excellent because to the impact of the import ban, COVID-19 outbreak, earthquake, and worldwide environment.

He stated that the government sets a revenue target that is larger than the GDP and other economic indicators every year, but that the target is not being met in the current fiscal year.

Dr. Mahat, Finance Minister, stated that there is a difficulty in the economy due to the investment environment and the banks’ high interest rates.

He stated that he is always speaking with the Rastra Bank how to use monetary policy tools to alleviate banking and financial sector challenges and create an investment environment. He stated that if there is a circumstance in which the interest rate on bank loans might be cut, banks must assist He also stated that it is critical to convey to the public a good message regarding the state of the economy.

Finance Minister Dr. Mahat said that even though the economy has deteriorated, some statistics are good.

He said that in order to make the investment environment in the country positive, the monetary policy and the economic policy of the government should go towards achieving the same goal.

Dr. Mahat, Finance Minister, stated that the government is in favor of boosting capital investment while remaining extremely frugal in ordinary spending. He stated that, while the government has little intention of decreasing overall spending, it will reduce spending that will be incurred even if the government does not spend.

He said that there will be many requests for ministry projects throughout the budget planning process, but they will be prioritized. He stated that there is an issue with the government’s capital expenditure and that a system for spending capital expenditure on time is required.

He added that the government has begun preparations to end the situation in which infrastructure work is not completed on time, the cost of the project rises, and the project becomes more expensive.

Finance Minister Mahat said that the government’s strategy is to spend capital expenditure at a certain time and not to spend limited resources on many projects.