Laxmi Capital News
ADB to help govt mitigate fiscal deficit

The Asian DevelopmentBank (ADB) has said that it will support the government of Nepal in mitigatingthe resource deficit that the country is currently facing in implementing thefederal system.

Moreover, ADB officials informedthat discussions are under way with the government of Nepal to finalise thesupport modality.

“We have taken into account thefinancial deficit that Nepal is likely to face while allocating additionalbudgets at the provincial and local levels under the new governance system thatthe country has adopted,” said Hun Kim, director general at South Asiadepartment of ADB, adding that ADB is currently discussing the ways to supportNepal to overcome the fiscal deficit.

During a brief conversation with TheHimalayan Times at the 51st annual meeting of ADB’s Board ofGovernors, which kicked off in Manila, Philippines from Thursday, Kim alsoinformed that ADB will highly prioritise Nepal’s infrastructure sector in thefuture.

“A recent breakthrough of theMelamchi Water Supply Project, one of the biggest ADB-supported projects inNepal, is a great success. ADB will focus on similar transformative projects inNepal in the future,” added Kim.

More than 4,000 visitors, includinghigh-level government officials from around the world, finance ministers ofSouth Asia and Pacific nations, members of civil society and developmentagencies, private sector and media, among others, are currently in thePhilippine capital to participate in the ADB’s annual meeting.

Being organised with the theme of‘Linking people and economies for inclusive development’, the ADB meeting isexamining the development hurdles in South Asia and the Pacific.

Likewise, various seminars anddiscussions are also under way regarding the role of private sector in meetinginfrastructure needs in the region, technology and labour market in South Asiaand entrepreneurial growth in the region.

Meanwhile, Finance Minister YubarajKhatiwada, who is also in Manila to attend the ADB meeting, toldTHT thatthe government has asked ADB to primarily support Nepal in infrastructuralprojects that connect or assure linkages between rural and city areas in thecountry.

Moreover, Khatiwada said that Nepalshould explore other possible means of support from ADB in the coming days,rather than only focusing on seeking concessional loans.

Source : THT, 5th May 2018

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