Target to achieve 6% growth ambitious: NCC

By A Staff Reporter,Kathmandu, May 31: Nepal Chamber of Commerce (NCC) said that the implementation of the budget for the next fiscal year presented by the government to the Parliament on Monday is challenging.

Presenting its views over the budget, the NCC said that it is challenging to ensure the source of the budget of Rs. 1,751 billion unveiled by the government for the next fiscal year 2023/24.

Looking at the present revenue collection target, the target of collecting Rs. 1,248 billion revenue for the next fiscal year is difficult, it said.

The Chamber believed that the target to achieve the economic growth of 6 per cent is also very ambitious.

In a statement released by the Chamber, it said, "In the context of the overall economic growth of only 2.16 per cent in the current fiscal year, the target of 6 per cent economic growth for the next fiscal year seems to be very ambitious."

The Chamber said that it would be difficult to achieve an economic growth of 6 per cent in the coming year due to the announcement of a large-sized budget, but inability to make structural reforms and ensure resources.

According to NCC, the budget has not been able to bring the present problematic economy on the right track.

It said, "In the current situation, the target of raising domestic debt of Rs. 240 billion is likely to cause a liquidity crisis in the financial market."

However, the Chamber has said that it is welcome to announce reduction of government expenditure and austerity in the budget.

The Chamber believed that the system of sending the imported goods to the market only with the label of the importer and market distributor on the packaging from the first day of the next fiscal year would discourage illegal trade at the border.

The provision of completing the entire process related to environmental impact assessment within 30 days is appreciable part of the budget, it said.

The Chamber has commented that the study and implementation of the possibility of cannabis cultivation for medicinal purposes was positive as the budget has been allocated with the highest priority for the agricultural sector.

The Chamber has also taken the opening up of land plotting that had been closed for a long time and the arrangement to sell real estate through brokers licensed by local bodies positively.

It is mentioned in the press release issued by the Chamber that the system of registration of firms online only at Rs. 100 is a positive thing.

The Chamber expected that the government would create an investment-friendly environment by announcing the tourism decade from 2023 to 2033 and holding an investment conference next year.