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Lives Versus Lives

After eight weeks of compliance to a government mandated blanket lockdown, the country is onto yet another extension. 

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Ankshita Chaudhary

About Ankshita Chaudhary

Ankshita is working as the Research and Communications Officer. She is a Bachelors in Business Administration graduate from Kathmandu University. She regularly writes articles and blogs to promote alternative outlooks on contemporary political-economic debates in Nepal. She reserves interest in the area of federalism, entrepreneurship and economic development; and aspires to create institutional and policy reforms that promote evidence-based policy making in their practices.

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The Start-up Culture Post-Lockdown

Today, we can’t help but imagine the landslide of problems that are beginning to hit the start-ups as we speak. The start-up culture in Nepal has been providing a number of individuals an opportunity to test their ideas on a small scale, with non-traditional but innovative, risky but exciting short term business models, and has proven to be vibrant because of the involvement of young entrepreneurs and innovative enthusiasts, specifically in the IT sector or in the case of IT-friendly business strategies.

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Anushruti Adhikari

About Anushruti Adhikari

Anushruti is a Research Intern at Samriddhi Foundation. She is a Graduate Student of Bachelors in Business Administration- Specialization in Banking and Insurance. She is interested in Economics, Policy Research and Analysis

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Post-Lockdown Strategy: Let The Market Be Free

With the recent lockdown flexibility maintained in India, it is high time we consider opening our economy as soon as possible. When measures for ensuring safety against the COVID-19 are available, with the right policy we can go back to our usual routine once again and end the economic misery. 

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Anushruti Adhikari

About Anushruti Adhikari

Anushruti is a Research Intern at Samriddhi Foundation. She is a Graduate Student of Bachelors in Business Administration- Specialization in Banking and Insurance. She is interested in Economics, Policy Research and Analysis

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Making Decisions During a Pandemic

Nepal is getting ready to face one of the most powerful pandemic in its history. The nation has been on a lockdown since March 22, 2020 as a preventive measure against the spread of Coronavirus. While every individual, company and city is preparing for the worst, our chance for safety lies in staying at home and stocking essential supplies.

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Anushruti Adhikari

About Anushruti Adhikari

Anushruti is a Research Intern at Samriddhi Foundation. She is a Graduate Student of Bachelors in Business Administration- Specialization in Banking and Insurance. She is interested in Economics, Policy Research and Analysis

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भारतीय बजेटको तरंग

डा. हेमन्त दवाडी

भारतका वित्तमन्त्री अरुण जेट्लीले आर्थिक वर्ष २०१७/१८ को वार्षिक बजेट भारतीय संसद्मा प्रस्तुत गरेका छन्। सवा सय करोड जनसंख्या भएको र विश्वअर्थतन्त्रमा ‘ब्राइट स्पट’का रूपमा चित्रण गरिने मुलुकको बजेटप्रति अन्तर्राष्ट्रिय चासो हुनु स्वाभाविक हो। अझ नेपालजस्तो भारतसँग खुला सिमाना रहेको र आफ्नो दुईतिहाइ अन्तर्राष्ट्रिय व्यापारसमेत उसैसँग हुने मुलुकका लागि त त्यहाँको बजेट महत्वको विषय हुने नै भयो।

भारतीय बजेटले भारतमा आयात हुने वस्तुमा लाग्ने महसुल र भारतमा उत्पादन हुने वस्तु र सेवामा लाग्ने शुल्कमा खासै परिवर्तन नगरेबाट नेपालमा ती वस्तुको मूल्यमा तत्काल असर नपर्ने देखिन्छ। अप्रत्यक्ष करमा भएका सबै परिवर्तन अझै पनि उपलब्ध भइनसकेकाले तिनको विस्तृत लेखाजोखा हुन केही समय लाग्नेछ।

भारतका वित्तमन्त्रीले त्यहाँको सरकारको बजेट एजेन्डालाई रूपान्तरण, सशक्तिकरण र निर्मलीकरणका रूपमा चित्रण गरेका छन्। यसले नेपाललाई पनि आफ्नो अर्थतन्त्रलाई पारदर्शी एवं उद्यमशीलतामुखी बनाउन अभिप्रेरित गर्ने सम्भावना छ।

पाँच सय र हजार रुपैयाँका पुराना भारतीय नोटको ‘नोटबन्दी’पछि आमभारतीयले भोग्नुपरेको कष्टलाई दृष्टिगत गरेर तिनलाई खुसी पार्नेखालको ‘पपुलिस्ट’ बजेट आउने अपेक्षा धेरै भारतीय विश्लेषकको थियो। तर, अपेक्षाविपरीत पुँजीगत खर्चमा बढोत्तरी गरी सरकारले दिने अनुदानमा खासै परिवर्तन नहुनुले भारतीय बजेटलाई ‘पपुलिस्ट’ मान्न मिल्दैन। बजेट वक्तव्यपश्चात् भारतीय पुँजीबजारको मापक मानिने बम्बे स्टक एक्सचेन्जको सेन्सिटिभ इन्डेक्समा झण्डै ५०० अंकको (करिब १.५ प्रतिशत) वृद्धि हुनुले उद्योग व्यापार क्षेत्रले भारत सरकारको बजेटलाई सकारात्मक रूपमा लिएको पुष्टि गर्छ। भारतका कतिपय स्वतन्त्र अर्थशास्त्रीले बजेटको स्वागत गरेका छन्। भलै चरम राजनीतिक विभाजन भएको अवस्थामा केही प्रमुख राज्यको आमनिर्वाचनको पूर्वसन्ध्यामा ल्याइएको बजेटलाई विरोधी दलहरूले नकारात्मक चित्रण गरेका छन्।

यस  बजेटको प्रमुख विशेषता पुँजीगत क्षेत्रमा बढेका विनियोजन नै हुन्। ग्रामीण क्षेत्रमा गरिने पुँजीगत लगानीमा २४ प्रतिशतको वृद्धि गरिएको छ। यसले ग्रामीण भारतको पूर्वाधारमा ठूलो परिवर्तन ल्याउने र भारतीय कृषि अर्थतन्त्रमा सकारात्मक असर पर्ने अपेक्षा गर्न सकिन्छ।

भारतीय बजेटले त्यहाँका साना व्यक्तिगत आयकरदाता र सानो कारोबार गर्ने कम्पनीको आयकरमा कमी गरेको छ। अब भारु २.५ लाखदेखि ५ लाखसम्म आय रहेका व्यक्तिले १० प्रतिशतको सट्टा ५ प्रतिशतमात्र कर तिर्नुपर्ने भएको छ। त्यस्तै, भारु ५० करोडसम्मको कारोबार गर्ने कम्पनीले ३० प्रतिशतको सट्टा २५ प्रतिशतका दरले मात्र संस्थागत आयकर तिर्नुपर्नेछ। साथै, कर तिर्ने सबै व्यक्तिको कर दायित्वमा १२,५०० ले कमी आउने भएको छ। भारतले लिएको यस कदमबाट नेपालमा पनि साना करदातालाई लाग्ने करको भार कम गर्न दबाब बढ्ने निश्चित छ।

भारतीय बजेटमा भुक्तानीको विद्युतीय माध्यमको प्रयोग बढाउन र मुलुकको अर्थतन्त्रलाई पारदर्शी बनाउन धेरै पहल घोषणा भएका छन्। भारतीय अर्थतन्त्र ‘क्यासलेस’ हुँदै जाँदा उद्योग एवं उत्पादनहरू थप प्रतिस्पर्धी बन्ने निश्चित छ। यसले भारततर्फ हुने नेपाली निर्यातमा थप दबाब पर्नेछ र नेपालमा भारतबाट हुने आयात बढ्नेछ। साथै, अर्थतन्त्रमा नगदको प्रयोग घटेमा कर छल्ने प्रवृत्तिमा कमी आउने र अनौपचारिकको सट्टा औपचारिक अर्थतन्त्रले टेवा पाउने देखिन्छ। बजेट वक्तव्यमा भारतीय वित्तमन्त्रीले राजनीतिक दलहरूलाई दिइने चन्दा सम्बन्धी नियममा व्यापक परिवर्तनको प्रस्ताव गरेका छन्। अहिलेसम्म २०,००० सम्मको चन्दा नगदमा स्रोत नखुलाइ लिन पाइने अवस्था रहेकोमा अबउप्रान्त २,००० सम्ममात्र स्रोत नखुलेको चन्दा लिन पाइने भएको छ। साथै, राजनीतिक दलले मात्र भुक्तानी लिन मिल्ने चुनावी ऋणपत्र(इलेक्टोरल बन्ड) को प्रस्ताव बजेटमा छ।

अपारदर्शी अर्थतन्त्र(ब्ल्याक इकोनोमी) बढ्नुमा राजनीतिक दलको अपारदर्शी वित्तव्यवस्थालाई नै प्रमुख कारकको रूपमा लिने गरिन्छ। राजनीतिक दललाई दिइने अपारदर्शी चन्दाले भ्रष्टाचार एवं आर्थिक विकृतिलाई टेवा दिने गर्छ। नेपालमा पनि राजनीतिक दलहरूको आय–व्ययमा ठूलो अपारदर्शिता रहँदै आएको छ। के हाम्रा राजनीतिक दलले अबउप्रान्त सबै चन्दा पारदर्शी रूपमा चेकमार्फत् लिन पहल गर्लान्? र, हाम्रा अर्थमन्त्रीले बैंकमार्फत् मात्र दलहरूलाई चन्दा दिन पाइने र राजनीतिक दलले आफ्नो आयको विवरण आयकर प्रशासनलाई दिनुपर्ने बाध्यकारी व्यवस्था लागु गर्ने साहस गर्लान्? यो हामी सबैका लागि चासो र चाखको विषय हो।

भारतीय बजेटमा वैदेशिक लगानीको क्षेत्रमा ठूलो प्रक्रियागत परिवर्तनको घोषणा भएको छ। हालसम्म भारतमा कतिपय क्षेत्रमा स्वचालित माध्यम(अटोमेटिक रुट) बाट र अन्य क्षेत्रमा सरकारको वैदेशिक लगानी प्रवर्द्धन बोर्डको पूर्वअनुमति लिएपछि मात्र वैदेशिक लगानी गर्न पाइने व्यवस्था थियो। वित्तमन्त्रीले वैदेशिक लगानी प्रवर्द्धन बोर्डको अन्त्य गरी सबै वैदेशिक लगानी स्वचालित माध्यमबाट परिचालन गर्ने प्रस्ताव गरेका छन्। नेपालमा पनि कतिपय वैदेशिक लगानीका निम्ति उद्योग तथा लगानी प्रवर्द्धन बोर्डको पूर्वअनुमति लिनुपर्ने व्यवस्था छ। पूर्वअनुमतिका लागि बोर्डमा प्रस्ताव लगिरहनु नपर्ने व्यवस्था गरिएमा वैदेशिक लगानीको वातावरणमा केही सुधार हुन सक्ने थियो।

भारतका वित्तमन्त्रीले त्यहाँको सरकारको बजेट एजेन्डालाई रूपान्तरण, सशक्तिकरण र निर्मलीकरणका रूपमा चित्रण गरेका छन्। यसले नेपाललाई पनि आफ्नो अर्थतन्त्रलाई पारदर्शी एवं उद्यमशीलतामुखी बनाउन अभिप्रेरित गर्ने सम्भावना छ। नेपालमा नियन्त्रणमुखी विचारधाराको बाहुल्य रहेको परिप्रेक्ष्यमा बजेटमार्फत् भारतीय अर्थतन्त्रमा आउने आर्थिक परिवर्तनबाट नेपाली अर्थतन्त्र अझै पछि पर्ने सम्भावना बढेको छ। व्यक्तिव्यक्तिमा रहेको उद्यमशीलताको उपयोग गर्दै प्रतिस्पर्धी अर्थतन्त्रको निर्माणको विकल्प नरहेको सन्देश भारतीय बजेटले दिएको छ।

Hemant Dabadi

About Hemant Dabadi

Dr. Dabadi is a Senior Fellow at Samriddhi Foundation.

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Economic prosperity through free market

This article was originally published by Prience Shrestha on The Himalayan Times in December 11, 2016.

Price system in a free market enables producers to gauge supply and demands of specific products or services in the market and consequently produce those demanded items. In the process, the price system helps the market guarantee an optimal utilization of resources. Following this notion, the idea of encouraging free market while limiting the role of the government in commerce and infrastructural services has remained valid, and has also delivered prosperity in different societies.

The drive towards liberalizing the economy in the 1990s where the private sector took charge of the economy while the government played the role of a facilitator and a monitor sparked impressive economic growth in Nepal in its consecutive years.

However, it should not be taken to mean that Government is a hindrance to prosperity, and therefore deserves to be completely extricated. Instead, Government has a strategic role of framing and enforcing laws and regulations that allow effective functioning of the market in the society. After all, free market relies on rules of just conduct that assures security of certain rights (private property, engaging in free enterprises) and enforcement of contracts for it to prevail and yield prosperity.

‘Strong and limited’ versus ‘weak and unlimited’

Economic prosperity through free market occurs in presence of a strong government that keeps itself to playing the role of a facilitator and only administers justice and provides protection to people lives and properties while allowing the private sector to thrive. On the contrary, unlimited government that participates in all such activities that the private sector could do more efficiently, but is weak in performing its role of enforcing foundational rules of the market is disastrous to economic prosperity.

Renowned economist Tom G. Palmer makes similar assertion as he attempts to range government effectiveness from the lowest scale of “weak and unlimited” to the highest scale of “strong and limited” in his essay called ‘20 Myths of Market’. Interestingly, this continuum offers an opportunity to scale the effectiveness of our own Nepal Government on the very measure of “strength” in enforcing market propelling rules and “limitedness” in keeping itself away from practicing commerce and providing public services and infrastructures – things that can be better taken care of through private sector under clearly laid down regulatory framework.

Weak government

In judging the strength of our Nepal government on this regard, its success in being able to enforce the legislated rules and regulation impartially among all participants of the market is definitely one of the important deciding variables. Given how it has remained exclusively lenient in imposing commercial regulations among large business houses, it only reckons double-standard and weakness from the side of the government in effectively enforcing rules and regulations. The latest running probe against Patanjali Ayurved Group of India regarding its unauthorized investment of more than NRs 150 crore in Nepal without retrieving permission as per our Foreign Investment and Technology Transfer Act (FITTA) is definitely a relevant illustration for it. Though this case scenario has especially charged the Indian Herbal FMCG company as guilty for skipping Foreign Investment regulations, the influence of the company and its founders’ strong stature on our government’s enforceability cannot be undermined either.

Besides, similar concern of lack of government enforceability has also been observed in regards to outbound foreign Investment from Nepal. Speaking of it, people that can exercise influence on the government havemanaged to make foreign investment outside of Nepal despite such practice being barred by the law. In no way could a layman have succeeded in practicing Foreign Investment as such.

The idea here is not to favour the capital control intention of our Investment regulation. It is in fact to highlight the partiality in enforcing the laws and regulation on different individuals and institutions based on stature and political connections. Ultimately, this lack of objectivity only pictures the inability of our government to enforce the legislated regulation.

Except for the inability of the government to enforce laws and regulation objectively, dearth in institutional capacity of the government is also known to have hindered strong enforcement of law and justice. While this issue has infected all areas beyond commercial affairs, unfocused diversion of limited institutional capacity of the Government can be mostly found culprit for it.

The unlimited government

In turning towards evaluating the limitedness of our Nepal government, the boundless extension of ever-ballooning budget of the Nepal government is self-explanatory. After all, it is quite clear that the Government has chosen to remain limitless regarding its scope of influence in the economy. Economic Survey Report FY2015/16 published by the Ministry of Finance (MoF), shows clearly that the growth rate of fiscal budget, and the ratio of Government Budget to National GDP are observing rise in approximate average of 19.77% and 28.26% respectively; in other words, Government of Nepal has adopted the principle of unlimited government in terms of its role in the economy.

If we now revisit the aforementioned scales in terms of measuring the government effectiveness, Government of Nepal unfortunately appears to lie close to the ‘weak and unlimited’ category (as against the more favoured ‘strong and limited’). Therefore, it is advisable for the Nepal government to gradually strengthen its role in areas of law enforcement and justice by curtailing its presence in commercial activities. Gradual divestment of State-owned enterprises mostly involved in commerce is one of the many widely favoured measures prescribed on this regard.Such measure allows the Government to concentrate its unnecessarily dispersed institutional resources in fundamental areas (i.e., administration of justice, contract enforcement, protection of lives and properties, and market monitoring) that support Free market and liberalization.

Prience Shrestha

About Prience Shrestha

Prience works in the research department at Samriddhi Foundation. And, he attempts to specialize in the field of Development Economics

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