Dr. Divas Bahadur Basnyat - Coordinator-Water & Climate Program
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Dr. Deependra Rokaya, Senior Research Specialist at NDRI moderated the event. Dr. Shankar Shrestha, Executive Director of NDRI, commenced the event with his welcome remarks. He highlighted the importance of budget analysis in fostering transparent and effective economic policies. Dr. Rudra Suwal, Senior Economist and Lead of the Economic Development Program at NDRI, delivered a keynote presentation with a critical analysis of the national budget. Dr. Suwal's analysis shed light on key allocations, expected economic impacts, and potential challenges facing the country in the upcoming fiscal year. Dr. Suwal explained that a majority of the amount received as a loan is spent on the payment of principal and interest on the previous loans. He also noted that it's not practical to increase the size of the loan based on the existing loan. The government's decision to obtain loans at high interest rates, with interest rates increasing as the debt grows, may result in credit and debt losses. Therefore, a better fiscal policy should be implemented to ensure economic growth and sustainability. Regarding tax revenue, approximately 20 % comes from excise taxes, and expenditure heavily relies on imports. This implies a heavy reliance on import tax as the source of revenue, which is not a sustainable source of government revenue. The government has set a target of 6.2 percent economic growth for the upcoming fiscal year. However, considering the growth rate of around 4% for the past decade - alongside the current growth rate, inflation rate, and interest rate - the 6% economic growth target seems slow. The trend of widening budget deficits, the inability to utilize the deficit budget in the productive sector, and inadequate fiscal policy have contributed to sluggish fiscal growth. 
After the presentation, the thematic experts Dr. Nawa Raj Khatiwada and Dr. Jaya Kumar Gurung provided critical insights into various sectors including environment, education, healthcare, infrastructure, and economic reforms. Dr. Nawa Raj Khatiwada emphasized that the need to develop Information Technology was already well recognized, and thus didn't require specific mention in the budget. Instead, he argued that the focus should shift towards promoting remote jobs rather than continuing to invest heavily in physical infrastructure. He called for more research to determine where the budget should be allocated most effectively. 
Similarly, Dr. Jaya Kumar Gurung raised concerns about the government's increased budget for education, questioning whether it addressed the critical issue of brain drain and the retention of students who have migrated abroad. Dr. Gurung also highlighted the need for existing incubation centers to focus on the employment of researchers. He further stressed that mental health, a significant global concern, should be addressed by producing more qualified professionals rather than constructing fancy infrastructures. He advocated for the promotion of community learning centers, awareness campaigns, and insurance programs. Dr. Gurung also criticized the government's claim of a 3% increase in tobacco tax, stating that such an increment is insufficient and does not constitute a meaningful increase. The event then transitioned into an open discussion where attendees, both in person and virtual, engaged with the NDRI speakers and thematic experts. One of the questions raised was how think tanks such as NDRI should contribute to policy formation to make the national budget more robust and development-focused instead of vague. Other discussions included whether development is possible if the new revenue could address the expenditure without foreign aid and loans, and if national financial institutions like CIT and SSF should invest in the national budget. This segment facilitated a robust dialogue on the budget's implications and encouraged diverse viewpoints from the participants. 
Ms. Salisha Raila, an economist at NDRI, presented the 
Dr. Krishna Pahari, President of NDRI, concluded the event with his closing remarks. He emphasized the significance of continued dialogue and research in enhancing the effectiveness of national budgets and economic policies. Dr. Pahari thanked all participants for their contributions and reiterated NDRI's commitment to supporting Nepal's economic development through rigorous research and analysis.