Finance minister promises boost to private sector morale in upcoming budget

KATHMANDU: Finance Minister Barshman Pun addressed concerns of the private sector, emphasizing their upliftment in the upcoming fiscal year’s budget. Speaking at a pre-budget discussion organized by the Society of Economic Journalists Nepal (SEJON) in Kathmandu, he outlined the government’s efforts to enhance the morale of private enterprises by streamlining administrative procedures, economic policy frameworks, and business environments.

Pun highlighted the recent amendments to eight laws aimed at removing legal obstacles prior to the investment conference. These amendments were made collaboratively with private sector involvement, reflecting the government’s commitment to creating a conducive environment for business operations.

He stressed that policy decisions are not made unilaterally but are crafted through consultation with private stakeholders.

The minister reiterated the government’s dedication to addressing issues that undermine private sector morale, underscoring the importance of creating a comfortable environment for businesses. By fostering dialogue and addressing concerns related to administrative and economic policies, the government aims to bolster confidence within the private sector.

He emphasized the need for coherence between fiscal and monetary policies, aiming to ensure consistency in government approaches across different sectors. While acknowledging the autonomy of the central bank, he underscored the importance of alignment with government policies to achieve national economic objectives.

In terms of budgetary priorities, he stated the government’s focus on increasing capital expenditure to stimulate economic growth. He noted that while the government’s contribution to capital expenditure is significant, the private sector also plays a crucial role in driving investment and economic activity.

Highlighting past achievements, Pun noted the positive impact of increased capital expenditure on economic growth, citing a consistent growth rate of around 7 percent over three consecutive years. However, he stressed the need for sustained growth to achieve economic stability and prosperity.

Looking ahead, the minister expressed optimism about the potential for double-digit economic growth, emphasizing the importance of both foreign and domestic investment. He reiterated the government’s commitment to creating an enabling environment for investment and fostering economic growth.

Pun reassured stakeholders of the government’s dedication to supporting the private sector and promoting economic growth. By prioritizing collaboration and addressing key challenges, the government aims to lay the groundwork for a resilient and prosperous economy in the coming fiscal year.