Private sector calls for bold measures in new budget

By A Staff Reporter,Kathmandu, May 10: Stakeholders have advised Finance Minister Barsaman Pun and finance administrators to take bold decisions to improve the economy through the upcoming budget.

Leaders of private sector organisations, economists, professors and stakeholders have made this suggestion at the 'Pre-Budget Round Table' programme organised by Society of Economic Journalists Nepal (SEJON) on Thursday.

Economist Prof. Dr. Achyut Wagle said that the finance minister and his team, who had made a political revolution, now needed the courage of major reforms to remove the problems in the state operation system.

He said that whatever development work was done in the past, it was possible because of the bold decision, that the decisive time had come for reforms. 

“The right time has come for the economic revolution and Finance Minister Pun is in that place. So, you have to take a bold decision in this regard,” he said.

He said that the sector which traditionally supported the economy was now in trouble and needed bold decisions and courage for reforms.

Stating that Nepal was lagging behind because it was not able to identify and develop the areas that have potential, Dr. Wagle said that it was necessary to create an environment for direct tax payment and removing the weaknesses in customs declaration.

Head of Economics Department of Tribhuvan University Resham Thapa said that the lower level of governments should not be overlooked while preparing the budget. 

He said that if the office of the local levels is effective, it will bring about a major change in the overall economy. 

Stating that environment was also deteriorating due to the high expectation of the private sector with government, he said that both the government and the private sector should not forget their contribution and responsibility. A large size budget should not be made, he said.

Economist Dr. Biswash Gouchan said that unless structural reforms were made, the budget that came every year could not bring radical changes. 

He said that the first budget for the upcoming fiscal year was the first budget of the 16th periodic plan, and suggested to maintain links between the long-term plan and the budget. 

He also said that the policy taken in the past regarding electric vehicles should be reviewed.

In the discussion, President of Federation of Nepalese Chambers of Commerce and Industry Chandra Dhakal expressed his hope that the new budget would meet the expectations of the private sector.

He said that every sector had slowed down due to low demand and supply in the market, and added that special facilities should be provided to industries that provide employment at least to one hundred people. 

Rajesh Kumar Agrawal, President of the Confederation of Nepalese Industries, said that there was a need for Nepal to adopt the pre-COVID policies in the coming fiscal year. 

President of Nepal Chamber of Commerce Kamlesh Agrawal said that there was a need of a budget that would end economic stagnation. 

He said that even the government could not be successful until the morale of the private sector improved. 

He suggested that wrong policies taken in the past should be corrected. 

President of Nepal Bankers Association Sunil KC said that the situation where investable funds accumulated in banks but the economy was not running smoothly indicated that investors lacked confidence. 

He said that there was a need for a policy that encouraged people who do business.  Chairman of the Confederation of Banks and Financial Institutions (CBFIN) Upendra Paudel suggested that the government make a budget targeting them as the students were going abroad after not seeing opportunities in the country. 

Ganesh Karki, president of Independent Power Producers' Association (IPPAN), suggested that the budget give special priority to this sector, citing that hydropower sector would not only generate electricity but also expand roads, market and employment. 

He said that the local government should also be informed about the fact that there should be no double tax on hydropower.

President of NADA Automobiles Association of Nepal Karan Kumar Chaudhary complained that the government had forgotten the automobile sector.

He said that there was a discrimination between electric vehicles and other vehicles and the automobile sector as a whole was in trouble. 

On the discussion, Finance Minister Pun and Finance Secretary Madhu Kumar Marasini requested to be optimistic about the upcoming budget.

Finance Minister Pun said that the situation was improving this year as compared to last year and said that he was preparing the budget with optimism. He said that the budget would raise the confidence of the private sector and added that the private sector should also support it. 

He said that the government would find the reason behind erosion of morale of the private sector and the people and adopt the polices to raise their confidence.

Recalling that the government had amended the law in the investment summit, he said that the government always backed the private sector. 

He said that the new budget would play a role in creating an industrial environment in the country.

Finance Minister Pun said that he agreed with the suggestion that fiscal policy and monetary policy should be in harmony.

Finance Secretary Marasini assured that the budget would be prepared keeping in mind the maximum number of points raised in the discussion.