The government has imposed a high percentage of tax on the taxpayers. According to reports, Nepal is the country where the taxation rate is higher among the South Asian countries. Despite such a high rate of taxation, the government has failed to collect the targeted revenue and every month, it is compelled to raise public debts both from home and abroad. After the government introduced the present political system the general sector expenditure has increased tremendously. When the government decided to pay salaries and allowances to around 40 thousand people elected representatives and their aides and advisors, the general sector expenditure inclined. Moreover, managing expenditure for seven provinces and 753 local bodies under political pressure became a white elephant to feed.

The construction companies are saying that even after the completion of the projects months ago, they are unable to get payment from the government. Likewise, the business community is asking the government to release bonuses against exports of goods committed by the government. The government is reluctant to release funds. The Dairy Development Corporation has been unable to pay the dues of dairy farmers for months. Meanwhile, the Corporation has decided to stop buying milk from local dairy farmers. The domestic economy is slumping as the market supply chain has been disrupted. Businessmen are not taking loans from banks even after the interest rate is reduced. Industrialists say that the government is performing non-cooperation as taxation on different raw materials is very high. Therefore, doing business, or say, importing readymade products from abroad is safe and there is a good profit margin. The government is happy to get revenue from the import of goods. The reason is that Nepal has become a country totally relying on imports.

The economy is the backbone of a nation but our economy has taken the wrong course. The government is unable to manage funding for capital expenditure. The recent rains caused a disaster in the country due to floods and landslides. Many roads have been severely damaged but the government has no funds to repair them. The government is unable to distribute necessary relief support to the floods and landslides victims. To conclude, the government is on a journey without money, or say, “Empty Pocket No Money Galgaliya to Jogmani”. Basically, the government needs to cut down its non-productive expenditure, that is, removal of the provincial structure and reducing the number of the local bodies, or say, scraping of the present federal system. Nevertheless, those foreign puppet political leaders, even by knowing the disease, are saying that federalism is the best political system for the country as they are involved in daylight loot. Be that as it may, federalism is to turn Nepal into a failed nation, which is in the interest of the foreign powers.

Source : https://www.peoplesreview.com.np/2024/10/23/empty-pocket/