--By Suraksha Adhikari

 Though various sectors have piled their recommendations at the Finance Ministry for the upcoming budget, the ministry sources say those last minute proposals are not going to be considered. 

The Ministry has received dozens of demands to address through budget, said spokesperson at the Finance Ministry Janma Jaya Regmi. “But we are trying mainly to make the new budget free of political ideology and concentrate on development of various sectors.” 

He added that the government should follow the budget formulation  process and many stakeholders are yet to accept this fact.

Sagar Acharya, Deputy Spokesperson of National Planning Commission (NPC) too says that the year’s budget wouldn’t be making drastic changes in the existing policies. It would only give continuation to the existing development projects and fulfill the commitment to the donor agencies, he said. 

“The main priority of new budget is to hold the election. Similarly, the budget will be concentrating on projects of national pride that include energy, infrastructure development, tourism, commercialization of agriculture and good governance,” said MoF spokesperson Regmi. 

“The ceiling of upcoming budget is expected to be Rs 506 billion but there has already been demand of around Rs 768 billion from various sectors,” informed Sagar Acharya.

Though there is the possibility of slightly revising the budget keeping in view the requirements of various sectors and regions, there won’t be much change in the total budget, he added. Acharya explained, “We are organizing a meeting on July 5-6 with National Development Council which has to submit a three years plan related to budget and expenses to the government. Depending on the feedback of the meeting, the final draft would be put forward only after which the budget writing process will start.” 

Various organizations such as Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Confederation of Nepalese Industries (CNI), multilateral/ bilateral donors and others have already asked the government to address their concerns through budget. 

Regmi said, “Various donor agencies including World Bank, ADB, DFID, and JICA have assured their commitments which have already reached up to Rs 27 billion and it is still increasing.” The amount provided by donor agencies would be invested in the sectors of high priority rather than scattering it across various sectors.”

 FNCCI Budget Recommendations

• Dedicated industrial grid for power supply.

• Increasing price of hydro power produced by private sector.

• VAT exemption on all the primary agricultural products.

• Provide subsidy also to the private sector for importing chemical fertilizers.

• Integrated Act related to Land Acquisition.

• Involvement of private sector in supply and distribution of petroleum products.

• Tax exemption to personal income of up to Rs 300,000 and family income of up to Rs 350,000 with only 5 per cent income tax on additional Rs 300,000.

• Income tax exemption for 5- 10 years to primary sector and secondary sector.

FNCCI has also suggested that new budget should be proposed on the last of Falgun, discussed and approved in Chaitra and implemented from Baisakh 1st.

CNI Budget Recommendations 

• To set “Vision 2080” with aim to increase per-capita income of Nepali to US dollar 3000. 

• To provide 25 per cent subsidy on the Gross Fixed Assets to the people of backward regions for establishing industries. 

• Granting Rs 20 million per megawatt as lump sum subsidy to the hydro projects. 

• Providing 25 per cent exemption on income tax to the industries that employ more than 100 persons. 

• Introducing or reforming Labour Act, Special Economic Zone Act, Foreign Investment and Technology Transfer Act (FITTA), Anti Dumping and Countervailing Act etc. 

• Agricultural tools and machinery should be tax free. 

• Reducing the custom duty on machinery and equipment imported by Nepali construction entrepreneurs. 

• Removing VAT threshold. 

• Establish Nepal as country with lowest income tax.