First Business News Portal in English from Nepal
KATHMANDU: Nepal Chamber of Commerce (NCC) has said that the annual budget the government unveiled for fiscal year 2022/23 is positive, but it is challenging to ensure its effective implementation.
Issuing a press release, the NCC said there are several positive points in the budget Finance Minister Janardan Sharma presented in the federal parliament on Sunday. However, the size of the budget (Rs 1.79 trillion) is simply big and not based on reality.
NCC further argued that making the budget huge without improving the capacity to spend is worrying. The spending capacity has remained lower than expectation because of the lack of structural reform. The NCC maintained that it will be difficult to achieve the target of 8 percent economic growth rate as the liquidity problem has not been solved yet and capital spending remains meager.
The business chamber, however, said the utilization of land left fallow and operation of agriculture ambulance are important priorities to boost agriculture. The plan to establish an agriculture microfinance fund of Rs 500 billion to promote agriculture was a positive step, NCC said.
Similarly, the creation of industry-friendly atmosphere within the country and concession for industrial operation are other positive moves, NCC stated in the press release.
It will be challenging for the government to collect the revenue of Rs 1,240 billion, according to NCC.
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