Friday, July 10, 2009

The reason for an ever-growing Nepal’s fiscal budget is…

… because

“there has always been a holier-than-thou attitude of the government in power and its finance minister. As one of the architects of Nepal´s fiscal budgets says, whoever is the finance minister at the helm, he does not want to be seen as chicken-hearted but rather a lion-heart, no matter what negative consequences his budget may cause to the economy.”

More here. Last year, the fiscal budget presented by the Maoist finance minister was 45% higher than the year before. But real expenditures fell short of the allocated budget. Why inflate fiscal budget when we cannot spend it?

Nepal’s central bank gets active, finally!

So, the central bank of Nepal,for the first time, is doing what it is supposed to do long ago. After liquidating Nepal Development Bank (NDB), it is now going after its promoters, who swindled almost Rs 1.08 billion while ruining the bank’s balance sheet. Some of the promoters are Madoff of Nepal!