Private sector disappointed

KATHMANDU, JUL 16 -

Political bickering over the budget has forced the government to bring a one-third budget — for the third time in six years. The private sector, which had lobbied hard for a full budget, has expressed disappointment over the one-third budget unveiled on Sunday.

The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) said its serious attention has been raised. In a statement, the private sector’s apex body said the announcement of a one-third budget ‘is unfortunate’, although it had advised several options for consensus on minimum issues between the government and political parties.

In its statement, FNCCI said it would be difficult for allocating resources for the Nepal Investment Year in the absence of a full budget and there would not be policy-level reforms for the creation of conducive business environment. “Economic and development activities will slow down, resulting in low productivity and employment generation due to low government spending,” said FNCCI Vice-president Pashupati Murarka. The government failed to create conduce environment for the Nepal Investment Year.

Similarly, the Confederation of Nepalese Industries (CNI) said the budget saddened the business community as there was nothing in the budget to help boost investor confidence. It has been must to keep the economic sector away from politics, said CNI Vice President Hari Bhakta Sharma.

The Nepal Chamber of Commerce (NCC) said the budget was just a formality for allocating administrative cost and carry out projects supported by foreign assistance. “We cannot expect anything for this budget,” said NCC President Suresh Basnet. He added that a full budget, which focused on boosting productivity, investment environment and employment generation, was the need of the hour.

Source: The Kathmandu Post