FNCCI‚ CNI welcome fiscal policy

KATHMANDU:

The two largest private sector umbrella organisations have welcomed the budget of Rs 618.10 billion presented by Finance Minister Ram Sharan Mahat on Sunday, but have stressed on the need to ensure its proper implementation.

Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and Confederation of Nepalese Industries (CNI) have said the budget is pro-private sector and the government has largely addressed many demands of the private sector.

Initiatives taken by government to end power crisis in three years, develop infrastructure required for industrial sector, promote entrepreneurship through creation of venture fund, and build special economic zones are positive, the organisations have said in separate statements.

However, the fiscal policy may not meet its goal of putting the economy on a higher growth trajectory, attracting investment, creating jobs and reducing the level of poverty if implementation is weak.

“The budget, which aims to create a strong foundation for migration of the country from the grouping of least developed countries to that of developing nations by 2022, has focused on development of energy and agriculture sectors, human resources and entrepreneurship, which the FNCCI admires,” FNCCI said.

However, it is known that improving investment and business climate is a continuous and long-term process and one fiscal policy or periodic plan will not be able to yield desired results overnight, FNCCI has said. “But if the programmes and reform agendas spelled out by the budget are truly implemented, the business climate will definitely improve.”

CNI has also stressed on the need to focus on budget implementation to reap maximum benefit from policy announcements made by the government.

Source: THT