Kathmandu. Finance Minister Dr Swarnim Wagle has sought suggestions from former finance ministers regarding the budget formulation for the coming fiscal year. Speaking at a programme organized in Kathmandu on Wednesday, the former finance ministers put forth their views on a range of issues ranging from revenue target to financial sector reform.

Former Finance Minister Dr Yubaraj Khatiwada has suggested Finance Minister Wagle to work within the boundaries while preparing the budget. He said that although politics is trying to push for big goals by seeking popularity, it should move ahead on the basis of the reality of the economy.

He urged the government to limit revenue growth from 10 to 12 per cent and suggested not to set an overly ambitious target. He urged the government not to limit revenue growth to 15 percent. Stating that the revenue collection in the current fiscal year would not be as expected, he said that the upcoming budget could be made around Rs 2.5 trillion, but the expenditure would be limited to Rs 16 to 17 trillion.

He suggested not to run lower slab of income tax, to gradually reduce excise duty and not to double the value added tax. He also said that the practice of carrying out development works by the federal government through the users’ committee should be stopped.

Stating that the expansion of the scope of health insurance should be carried out without increasing the financial burden on the state, Khatiwada stressed the need of subsidies in agriculture. Stating that the contribution of agriculture is decreasing in Madhes region, he urged the government to pay special attention to this.

He admitted that there were arbitrariness in the projects of national pride in the past and suggested moving ahead in a new way. He also stressed on the need of taking the institutions to an integrated development model, not to be afraid of LDC graduation process and diplomatic initiative to get the country out of the grey list.

He was of the view that the country could achieve 7 per cent economic growth only if the morale of private sector was boosted and coordination with Nepal Rastra Bank for financial sector reforms.