Government Tables Policies for Fiscal Year 2081/82; Intervenes in Microfinance Sector for Loan Restructuring and Support to Borrowers
The government's policy and program document for the upcoming fiscal year 2081/82 is currently being tabled at a joint meeting of the federal parliament, with President Ram Chandra Paudel addressing the session.
During the meeting, the government revealed intentions to intervene in the autonomy of the Nepal Rastra Bank and provide refinancing and loan restructuring facilities to borrowers of microfinance institutions. While acknowledging the central bank's authority over monetary policy and financial institutions, the government outlined plans to support the microfinance sector through annual policies and programs. President Paudel highlighted provisions for refinancing and loan restructuring aimed at assisting microfinance borrowers facing difficulties.
Additionally, the government announced plans to offer loans to 1,000 youths to kick-start their businesses in the upcoming fiscal year. President Paudel emphasized the launch of an innovation and national startup campaign, aiming to foster collaboration with academic institutions and promote entrepreneurship across all seven provinces through business incubation initiatives.
Furthermore, the government unveiled strategies to integrate government-owned cooperatives and implement a policy of merging savings and loan cooperatives. President Paudel emphasized the improvement of budget allocation efficiency and the exploration of new revenue sources. Despite assurances of maintaining allocation efficiency, concerns were raised regarding budget allocation to retail projects without adequate preparation. The government pledged to invest internal loans solely in sectors that enhance production, aiming to mitigate indiscriminate spending in non-productive areas.
In summary, the government's policies and programs for the fiscal year 2081/82 signal interventions in the microfinance sector, support for youth entrepreneurship, cooperative integration, and efforts to improve budget allocation efficiency while seeking new revenue sources and prioritizing productive investments.
