Next budget to be pvt sector friendly: FM
KATHMANDU, APR 12:
The finance minister Shankar Koirala has assured that the budget for fiscal year 2013-14 will be a private sector friendly one. The next budget will focus on the development of the private sector, he said at Reporters’ Club today.
“The government has full faith in the private sector and it will be reflected in the budget of 2013-14,” he said, adding that the government is preparing the next budget. The government will consult the private sector while drafting the budget, Koirala added.
According to Koirala, the government has started reforming the budget of 2012-13 and the next one will lay more emphasis on development by mobilising the private sector. “The government has allocated Rs 15 billion for energy development, including developing transmission lines, operating fuel plants, and importing electricity from India,” he said.
The finance minister assured that the government will not tolerate financial crisis in national pride projects. The cement industry will also be prioritised in the next budget. The country will be self-reliant in cement in the next couple of years, he said. The government will focus on elections but development programmes will also be accorded due importance simultaneously.
The government has not introduced any pro-people programmes because of resource constraints.
Koirala assured that the next budget will bring focused programmes on hydropower development, highway construction, and irrigation.
Senior vice president of Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Bhaskar Raj Rajkarnikar said that the government has given importance to the private sector in the budget. “The current budget has shown that the next budget will enhance public-private partnership,” he said. He urged the government to allocate budget for the ‘One Village, One Product’ programme, to reform ruined industries, and to open new economic sectors.
First vice president of FNCCI Pradeep Jung Pandey said that the budget allocation to build transmission lines, increase subsidy in chemical fertilisers, and promote exports is an encouraging feature of the budget.
President of Nepal Chambers of Commerce Suresh Kumar Basnet welcomed the budget but expressed dissatisfaction for not providing the opportunity to business people to disclose their property. Industrialist Diwakar Golchha urged the government to allocate budget to establish an export promotion house in the next budget.
Small and medium firms approve fiscal measures
The Federation of Small and Medium Enterprises Nepal (FSME-Nepal) has given its approval to the current fiscal year’s budget for being pro-Small and Medium Enterprises (SME).
The umbrella organisation of SMEs in Nepal — FSME — termed the recently announced budget as encouraging to the SME sector for its emphasis on programmes that facilitate SMEs, issuing a press statement today.
FSME president Junga Bahadur Shrestha pointed out the programmes included in the budget, such as building infrastructure for establishing an exhibition hall and sales centres, allocating expenses for funds to promote women entrepreneurship and technology development which will help not only SMEs but also the economy.
This week, the full budget was announced nine months into the fiscal year due to political bickering that compelled the fiscal and national planning administration to bring policies in installments. Moreover, the continued tussle did not allow the budget to include new programmes and projects, but the small gestures for enterprise promotion is all positive, said the release.
The budget has also stressed on enhancing agriculture productivity for import substitution. To commercialise the agro sector, the government will establish five commodities collection centres at highways and extend the already successful ‘One Village, One Product’ programme.
Moreover, the government’s commitment to establish another industrial area and bring the already built Special Economic Zone into full operation will further help Nepali SMEs grow, said Shrestha. The budget has also mentioned that the government will implement an export friendly policy to promote exports. Likewise, it has said that the government will provide facilities to revive sick industries.
“The policy to increase the participation of the private sector in hydropower and transmission line projects to provide respite from the ever increasing load shedding and the decision to accelerate investment in transportation will eventually encourage the SME sector,” said the release.
Entrepreneurs seek policy clearance
Entrepreneurs across the country, today, asked finance minister Shankar Koirala to promote the tourism potential of their districts, upgrade airports located in different parts of country, and regularise donation, besides seeking policy clearance regarding jurisdiction of Armed Police Force (APF), Nepal Police and revenue offices as they have frequently misbehaved with entrepreneurs.
“The government should clarify the jurisdiction of APF, police and revenue offices as they have all been troubling entrepreneurs,” they said at a ‘Budget interaction’, organised by the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) here today. The next budget must promote ‘One district, one product’, chamber model of hydropower development, fast-track service cell, and measures to substitute imports, they suggested, adding that project-wise budget allocation is better for the development of the country.
The finance minister, asking entrepreneurs not to expect too much from the incumbent government, lauded the FNCCI agenda of hydropower development. “The country has been losing money by not exploiting the available water resources and purchasing petroleum products,” he said, accepting that there are systemic and attitude problems, which he would try to correct.
Koirala also directed the finance and trade secretaries to take the suggestions of entrepreneurs seriously and provide better service to the public. “The government is ready to invest in areas that will help substitute imports.” Koirala said donation terror is a by-product of political transition.
Source: THT
