The Budget Needs To Announce A Special Plan To Promote The Private Sector: Chandra Dhakal

The Budget Needs To Announce A Special Plan To Promote The Private Sector: Chandra Dhakal

May 16, 2024, 12:07 p.m.

Chandra Prasad Dhakal, President of Federation of Nepal Chamber of Commerce and Industry, has said that a special plan for private sector promotion should be brought in the budget for economic transformation.

In the pre-budget discussion organized by the Federation on Wednesday with the Minister of Finance, President Dhakal emphasized that the private sector should be at the center of the budget.

He said that the government will consider the introduction of a special plan for the promotion of the private sector for economic transformation as a new phase of economic reform campaign.

He suggested that the size of the budget should not be increased for the next financial year. He mentioned that increasing the size of the budget will put pressure on the government to increase revenue and internal debt.

President Dhakal said that when there is pressure on revenue and internal debt, the private sector will be discouraged and debt obligations will increase.

He suggested that it would be appropriate to increase the actual expenditure by a maximum of 10 percent instead of estimating the revenue and expenditure based on last year's budget.

He mentioned that the reform policy is necessary to increase investment through financial and monetary policy. Chairman Dhakal said that increasing the competitiveness of the manufacturing industry by attracting investment is another challenge and mentioned that it is necessary to provide interventional concessions and support from the budget in all cycles to expand the capacity of the manufacturing industry.

He suggested creating an entrepreneurship policy and conducting an Entrepreneurial Nepali program. He demanded that the product-based concession program should be conducted for five years in which concessions are given on the basis of production, import substitution and export.

He said that the policy and program that came on Tuesday includes the promotion of investment companies promoted by the private sector, so the private sector is happy.

He mentioned that there is a demand from the private sector that the budget should play a transformative role in order to achieve sustainable and high economic growth by addressing the basic problems of the economy and the private sector.

He said that since the budget will also guide the direction of the monetary policy, a policy should be introduced to ensure that excess liquidity in the financial sector flows to the private sector.

He said that to attract the private sector, there is a need to improve the lending and collection policy.

He suggested that arrangements related to current capital loans, including restructuring and rescheduling, should be made by mutual agreement between the bank and the borrower.

To ensure the future of entrepreneurship in Nepal, the Federation has demanded that concessionary programs be conducted for small, domestic and small entrepreneurs to facilitate their establishment and expansion.

According to the federation, the local level should be authorized to register at one place, as the small domestic small and medium entrepreneurs currently only have to register in more than five places. He said that it is necessary to develop service business expansion and other industries as the main catalysts under the prosperity through technology program.

It has been suggested that only one percent income tax should be levied on export-oriented firm companies related to information technology for five years.

More on Economy

The Latest

Latest Magazine

VOL. 17, No. 19, May.10,2024 (Baishak,28. 2081) Publisher and Editor: Keshab Prasad Poudel Online Register Number: DOI 584/074-75

VOL. 17, No. 18, April.26,2024 (Baishak,14. 2081) Publisher and Editor: Keshab Prasad Poudel Online Register Number: DOI 584/074-75

VOL. 17, No. 17, April.12,2024 (Chaitra,30. 2080) Publisher and Editor: Keshab Prasad Poudel Online Register Number: DOI 584/074-75

VOL. 17, No. 16, March.29,2024 (Chaitra,16. 2080) Publisher and Editor: Keshab Prasad Poudel Online Register Number: DOI 584/074-75