The private sector has suggested emphasizing revenue mobilization and public expenditure effectiveness in the upcoming budget.
The private sector umbrella organizations have suggested this at a program organized by the Nepali Congress Congress Industry and Trade Department in Kathmandu on Monday to collect suggestions on issues to be included in the upcoming budget.
The private sector is demanding that the objectives and priorities should be to expand the open economy with social justice, structural changes for a new phase of economic reform, and promote the private sector and increase investment, promote good governance, and the effectiveness of revenue mobilization and public expenditure.
It has been emphasized that the working capital directive should be completely suspended for now, even if it is to make the economy dynamic. Speaking at the program, President of the Federation of Nepalese Chambers of Commerce and Industry, Chandra Prasad Dhakal, suggested that the objectives and priorities should include the expansion of an open economy with social justice, structural changes for a new phase of economic reform, promotion of the private sector and investment growth, promotion of good governance and efficiency of revenue mobilization and public expenditure.
According to a study conducted by the Federation across the country, political and policy instability is seen as an obstacle to the expansion of industry and business, so President Dhakal emphasized that policy stability should be prioritized.
He said, “The changes in the law have encouraged the private sector, and despite the existing laws and changes, there is a problem in implementation. Procedures and regulations should be made to implement the laws that have been changed. When it comes to foreign investment, only 2 percent and in the mobilization of domestic capital It should be emphasized. And the thing that has been broken is good governance and the general public should be made aware of the issue of good governance. The recent formation of the Good Governance Commission has encouraged the private sector. Youth in Nepal have been disappointed with employment and we should prioritize the things that we can provide employment in Nepal and create self-employment. While formulating the budget, it seems that the size is made large but the expenditure is very low, so the budget should be made to be spent and therefore it also gives results. At least for the next two years, the budget size should be set in a way that does not affect capital expenditure and does not increase the actual expenditure by more than 15 percent.”
In the program, Nepal Chamber of Commerce President Kamles Kumar Agrawal said that the economy has not been able to move due to working capital loans. He stressed that the working capital directive should be completely suspended for now, even if it is to make the economy move.
He said, “It is sad that more than one lakh entrepreneurs in the livestock business have been blacklisted. This situation has not improved even now. The private sector has not been able to take loans from banks and the financial sector by taking additional risks. The economy has not been able to move due to working capital loans. There is a problem in paying the principal and interest on loans. It seems necessary to increase the confidence of the private sector to get rid of the existing economic slack. For this, the private sector needs a simple economic policy, a liberal monetary policy, and an environment that is easy to operate in industry and trade. Policy arrangements should be made for poor Nepalis to enter the capital market and buy and sell shares, this will help make the economy dynamic.”
He emphasized that since all the methods of land restrictions have been completed, the real estate business should be revived. He expressed confidence that the economy, which has been slowed down by the real estate business, will become dynamic and revenue will also increase.
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