Feedback of Budget 2011-12 in Financial Big wig words
Dr Babu Ram Bhattarai‚ Former Finance Minister
The budget shifts its focus to socialism from capitalism but it loses concentration in specific areas of reform and promotion of economy. There are many programmes focused on poor and rural populace but they can not bring real change because they are not integrated. It has not addressed the demands of major ally of the government. Economic support to martyrs and conflict hit has come but not as we have demanded. Likewise, focus on employment and economic growth of five per cent is not attainable from such dispersed programmes. It is old wine in new bottle. So, I personally am not satisfied with the budget. However, UCPN-Maoist will back the budget as ally of the government at least on moral ground. Overall, the budget does not reflect our party’s vision and is against minimum understanding of the government allies.
Ram Sharan Mahat, Former finance minister
Economic growth claimed in the budget is baseless. How can the government achieve five per cent growth with out focused programmes? There are many programmes but they are populist rather than pro-people. The government must know dispersing money without a target can not bring changes. I doubt the budget has influenced by the corrupt business people, so the government has taken populist mode to make people happy. It has not addressed real problems capital and financial market and promoted the most unregulated sector, cooperative. Expecting economic growth putting cooperative as backbone of is a day dream. The budget has come after series of economic scams and it will fuel more scams in future. Therefore, I do not hope the budget will bring changes in economy and lives of people. The budget is absurd for people and the country.
Dr Prakash Chandra Lohani, Former finance minister
There is nothing to comment on the budget as it has already made public before presenting in the parliament. Anyway, it is good that the budget has come in time after three years. But the budget could not bring life to economy because of its distributive nature. There are lots of small programmes in the name of social welfare to distribute money to cadres of parties in the government. It can not bring socio-economic change people are looking for. However, it can contribute a little to agriculture sector, if implemented in time. But the chances are too little because it is not a stable government. It has totally ignored maintaining peace, security and law and order situation. Without rapid development, dream of a prosper nation is not possible.
Bhashkar Raj Rajkarnikar, Sr vice-president, FNCCI
The budget has disappointed Nepali private sector. There are not any empowerment programmes for private sector — the backbone of the national economy. Private sector has objected in introducing cooperative as third pillar of economy and as a major development tool. We will closely take a look at promotion of cooperative sector and can go against the government. The budget seems leaning toward mixed-economy, a policy reversal from the more than two decade long liberal economic policy. The government must clear about its economic philosophy as the earliest. Without government clarification about the role of cooperative in the economy, private sector can not cooperate the government. However, focus on agriculture and its commercialisation plans are enthusiastic. Private sector’s role in agriculture sector must be clear. I doubt the government can implement the budget without support from private sector.
Suresh Basnet, President, NCC
Budget 2011-12 has included all potential sectors of development. If implemented in real sense, it could bring changes. Focus on foreign employment, large infrastructure projects and energy sector are the most needed programme. The budget has increased the limit of source disclosure in bank deposit, land and vehicle purchase addressing the demands of private sector. Reduction of capital gain tax from 10 per cent to five per cent will boost capital market then the economy. So, Nepal Chamber of Commerce is not totally against the budget.
Rajendra Kumar Khetan, CA member, Industrialist
The budget has brought some measures for insurance sector like it has brought a concept of reinsurance which is a positive step. Similarly, the microfinance to be started is also a good move. The concept of establishing Export House could also encourage the small manufacturers, who has no ability to export. They can sell their products to the Export House for export. But the budget for the fiscal year 2011-12 could not encourage the overall exports sector. The proposed Investors’ Meet, which was also in the budget 10 years ago, is a good move which could attract foreigners to Nepal. The meeting should be organised annually. The budget has announced incentives for mergers which might encourage mergers.
Binod Chaudhary, CA member, President CNI
The export sector needs revamp but the budget could not address it. Similarly, the government claimed to give guarantee to buy aircraft for the troubled Nepal Airlines Corporation but it has said nothing on its management issue, which is in the news for all bad reasons. The budget has dropped the Outer Ring Road project which is not encouraging for the Kathmandu valley’s urbanisation. It was a major move. The budget has however, focused on power which is good as after five to eight years. the people do not have to suffer from the load shedding. But the budget lacked a concrete plan to revamp Nepal Electricity Authority. The controversy regarding the budget leakage is but unfortunate, though the budget has come in time, which in itself is a welcome move.
The budget shifts its focus to socialism from capitalism but it loses concentration in specific areas of reform and promotion of economy. There are many programmes focused on poor and rural populace but they can not bring real change because they are not integrated. It has not addressed the demands of major ally of the government. Economic support to martyrs and conflict hit has come but not as we have demanded. Likewise, focus on employment and economic growth of five per cent is not attainable from such dispersed programmes. It is old wine in new bottle. So, I personally am not satisfied with the budget. However, UCPN-Maoist will back the budget as ally of the government at least on moral ground. Overall, the budget does not reflect our party’s vision and is against minimum understanding of the government allies.
Ram Sharan Mahat, Former finance minister
Economic growth claimed in the budget is baseless. How can the government achieve five per cent growth with out focused programmes? There are many programmes but they are populist rather than pro-people. The government must know dispersing money without a target can not bring changes. I doubt the budget has influenced by the corrupt business people, so the government has taken populist mode to make people happy. It has not addressed real problems capital and financial market and promoted the most unregulated sector, cooperative. Expecting economic growth putting cooperative as backbone of is a day dream. The budget has come after series of economic scams and it will fuel more scams in future. Therefore, I do not hope the budget will bring changes in economy and lives of people. The budget is absurd for people and the country.
Dr Prakash Chandra Lohani, Former finance minister
There is nothing to comment on the budget as it has already made public before presenting in the parliament. Anyway, it is good that the budget has come in time after three years. But the budget could not bring life to economy because of its distributive nature. There are lots of small programmes in the name of social welfare to distribute money to cadres of parties in the government. It can not bring socio-economic change people are looking for. However, it can contribute a little to agriculture sector, if implemented in time. But the chances are too little because it is not a stable government. It has totally ignored maintaining peace, security and law and order situation. Without rapid development, dream of a prosper nation is not possible.
Bhashkar Raj Rajkarnikar, Sr vice-president, FNCCI
The budget has disappointed Nepali private sector. There are not any empowerment programmes for private sector — the backbone of the national economy. Private sector has objected in introducing cooperative as third pillar of economy and as a major development tool. We will closely take a look at promotion of cooperative sector and can go against the government. The budget seems leaning toward mixed-economy, a policy reversal from the more than two decade long liberal economic policy. The government must clear about its economic philosophy as the earliest. Without government clarification about the role of cooperative in the economy, private sector can not cooperate the government. However, focus on agriculture and its commercialisation plans are enthusiastic. Private sector’s role in agriculture sector must be clear. I doubt the government can implement the budget without support from private sector.
Suresh Basnet, President, NCC
Budget 2011-12 has included all potential sectors of development. If implemented in real sense, it could bring changes. Focus on foreign employment, large infrastructure projects and energy sector are the most needed programme. The budget has increased the limit of source disclosure in bank deposit, land and vehicle purchase addressing the demands of private sector. Reduction of capital gain tax from 10 per cent to five per cent will boost capital market then the economy. So, Nepal Chamber of Commerce is not totally against the budget.
Rajendra Kumar Khetan, CA member, Industrialist
The budget has brought some measures for insurance sector like it has brought a concept of reinsurance which is a positive step. Similarly, the microfinance to be started is also a good move. The concept of establishing Export House could also encourage the small manufacturers, who has no ability to export. They can sell their products to the Export House for export. But the budget for the fiscal year 2011-12 could not encourage the overall exports sector. The proposed Investors’ Meet, which was also in the budget 10 years ago, is a good move which could attract foreigners to Nepal. The meeting should be organised annually. The budget has announced incentives for mergers which might encourage mergers.
Binod Chaudhary, CA member, President CNI
The export sector needs revamp but the budget could not address it. Similarly, the government claimed to give guarantee to buy aircraft for the troubled Nepal Airlines Corporation but it has said nothing on its management issue, which is in the news for all bad reasons. The budget has dropped the Outer Ring Road project which is not encouraging for the Kathmandu valley’s urbanisation. It was a major move. The budget has however, focused on power which is good as after five to eight years. the people do not have to suffer from the load shedding. But the budget lacked a concrete plan to revamp Nepal Electricity Authority. The controversy regarding the budget leakage is but unfortunate, though the budget has come in time, which in itself is a welcome move.
