Finance Minister Commits to Policy-Aligned Budget; FNCCI Advocates for Sustainable Economic Growth Initiatives

Thu, May 16, 2024 10:30 AM on Latest, Economy, National,

Finance Minister Barshaman Pun announced that the forthcoming budget will be meticulously aligned with the government's outlined policies and programs aimed at bolstering production, employment, and enhancing the internal economy.

Speaking at an interaction organized by the Federation of Nepalese Chamber of Commerce and Industry (FNCCI) to discuss government initiatives for the fiscal year 2081/82, Minister Pun emphasized the government's commitment to incorporating these policies into the budget, with the monetary policy set to complement its directives. He welcomed constructive input from the private sector, underscoring the government's resolve to address challenges confronting the manufacturing and development sectors while ensuring timely payments to construction contractors.

Acknowledging the critical role of agriculture and infrastructure development in fostering economic growth, Minister Pun reiterated the government's dedication to propelling economic activities through comprehensive policies and programs. He stressed the importance of expanding the tax base over increasing tax rates as a more sustainable approach.

Chandra Prasad Dhakal, President of FNCCI, urged the government to craft a budget mindful of the nation's resources and capacities, capable of catalyzing a transformative economic landscape. Emphasizing the private sector's desire for sustainable and robust economic growth, Dhakal advised against inflating the budget size. FNCCI advocated for the conclusion of sovereign credit ratings, effective implementation of bilateral investment agreements, and facilitation of multi-year visas for potential investors. Furthermore, FNCCI urged the government to establish a viable gap fund and provide requisite support, gradually reduce income tax for production-based industries, and offer tax incentives for tourism and IT sectors. Additionally, it called for measures to support cottage and small industries, empower women entrepreneurs, promote domestic products, and streamline startup programs.