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KATHMANDU, Jan 15: Finance Minister Dr Ram Sharan Mahat has said that the
government is going to ask for extra financial support from the donor
community during the upcoming meeting of Nepal Development Forum (NDF) that is
going to held from February 4-7 in Nepal for the first time.
"The skyrocketing security expenses prompted by the declaration of a State of
Emergency has compelled the government cut some of the development
expenditures," Minister Mahat said.
He also said that whopping surge in the regular expenditure anchored by a soar
in security expenses has swallowed up a large chunk of the national revenue
collection, which has put the government in a difficult financial position.
The total expenses may even surpass the total revenue, he asserted.
Addressing an interaction programme on the upcoming Nepal Development Forum
2002 organised by Society of Economic Journalist of Nepal here today, he said
that the government will present the Tenth Plan and Poverty Reduction Strategy
Paper (PRSP) as the main policy documents during the meet.
Among others, the NDF meet will also review the Priority Reform Actions
committed by the government during the last NDF meeting held in Paris in April
1999. The government will also seek a broader donor support in its plan to
introduce Medium Term Budget Framework, he informed.
"During the meet, the government will also get fresh feedback of the donors on
the number of reform programmes that are presently in the various stages of
implementation," he said.
He also said that the NDF meeting will ensure the participation of civil
society, development experts and politicians to make the decision making
process transparent by incorporating voices from different quarters.
Speculating on the outcome of the meet, Dr Mahat said that the donors are
likely to extend support to the general direction of the Tenth Plan and commit
for government-donor partnership in days to come.
"The government also expects a broad and strong support from the donors to
address the widening gap between revenue and expenditure in the wake of the
latest increment in security expenses," he said.
The meet, which would be organised under the joint convenorship of the
government and the World Bank, is expected to be attended by over 30 donor
countries and agencies to review the overall development policies and
programmes of the government.
During the four-day meet, the World Bank will present a comprehensive economic
update of the country, outlining its shortcomings and suggesting corrective
measures.
The meeting, which typically takes place every two years, is being held after
an interval of 18 months, and is expected to be attended by high level
officials from the donor countries and agencies.
The upcoming NDF meeting, formerly known as Paris Aid Group meet, marks some
deviations from its past footprints. Unlike the last meeting, donors will also
present a paper focusing on their accountability and shortcomings while
financing development projects.
During the meet, Nepal will also present a number of sectoral papers pledging
to carry out the much-needed reforms, which includes accelerating the reform
process in the finance and civil service sectors, as well as speeding up the
processes of decentralisation and privatisation.
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