Saturday, December 3, 2022

Budget positive but challenging for implementation: NCC


Kathmandu, 31 May (2022) - Nepal Chamber of Commerce (NCC) has observed that the budget government brought for the fiscal year, 2079/80 was positive, but it was challenging for implementation.

Issuing a press release, the NCC said there were several positive points in the budget Finance Minister Janardan Sharma presented in the federal parliament on Sunday. The budget size (Rs 1.79 trillion) was huge. It was not based on reality, NCC argued.

NCC further argued that making budget huge on the one hand but lacking capacity to spend is worrying. The spending capacity was slow off of the mark because structural reform has not been made for it. It will be difficult to achieve the target of 8 percent economic growth rate.

Liquidity problem was not solved yet and capital spending meagre.

It however said the utilization of barren land and operation of agriculture ambulance are important priorities to boost agriculture. The plan to establish agriculture micro finance fund of Rs 500 billion to promote agriculture was a positive step, NCC welcomed.

Similarly, creation of industry-friendly atmosphere within the country and concession for industrial operation are other positive moves, NCC stated in the press release.

It was challenging for the government to collect the revenue of Rs 1,240 billion, according to NCC.