The budget should be based on the Three-Year Minimum Plan and Common Minimum Programme (CMP), suggested Dr Pushparaj Raj Rajkarnikar, former member of National Planning commission (NPC) at an interaction at Reporters’ Club here today.
Agriculture, hydropower, tourism and infrastructure development are the key areas the budget should address for economic growth, he said.
Previous governments also brought some good programmes like literacy programme — that could bring social transformation needed for economic development — and fast-track construction, Rajkarnikar said adding that the private sector did not come forward for the much-talked Fast Track Road construction due to frequent bandhs and insecurity.
“The private sector is not willing to invest,” he added. “It should be taken into confidence and the cooperatives sector groomed, apart from making the budget inclusive and a socially transformative one.” Finance Secretary Rameshwor Khanal also agreed the private sector has to be taken into confidence and that the government should create an investment-friendly environment.
“Commercialisation of agriculture thereby creating more jobs in agriculture, industrial security, expansion of road network for access to markets, and focus on spending on health and education for long term socio-economic change are the priorities of the budget,” he said adding that postconflict rehabilitation, relief and reconstruction are also important factors that the budget would not fail to address.
The private sector has suggested consistancy in revenue policy and the finance ministry is positive on that, he assured the business community.
“For implementation of long- term projects, the government is thinking of a multi-year budget,” Khanal added
However, Federation of Nepalese Chambers of Commerce and Industry (FNCCI) president Kush Kumar Joshi said that the security is key to industrial development.
“Industrial Security Force, solution to energy crisis, increasing competitiveness by scrapping the scrap tax and implementing multi VAT and boosting investors’ confidence are vital for employment generation,” he said adding that the budget must ensure peace in the industrial sector.
“Due to low export and high im- port, trade deficit of Nepal with other trading partner countries is widening hugely,” said Prof Dr Bishwhambher Pyakurel.
The trade deficit is at Rs 208.51 billion currently and is estimated to go up to Rs 330 billion by the end of the next fiscal year.
“Currently import is double the export,” he said adding that the contribution of industrial sector to the gross domestic product (GDP) has been decreasing.
He pointed out that the projection of the budget would fail if there was no coordination between Monetary Policy and Fiscal Policy. He also suggested forming a mechanism under the finance secretary to make fiscal and monetray policies compatible.
The Public-Private-Partnership concept has come to Nepal a long time ago but it has not moved forward
FNCCI has prepared a technical paper on the modality of PPP.
“Government apathy has made the PPP only a slogan,” Prof Dr Pyakurel complained.
Nepal Chambers of Commerce president Surendra Bir Malakar urged the government to bring multi VAt system for effective revenue mobilisation. He also suggested expanding tax net rather than increasing tax rate.
NPC former vice-chairman Dr Narayan Khadka advised the government not to bring out a populist budget.
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