‘FNCCI Welcomes Budget’ 

 

Nepal has not had a full -fledged budget since long. The Federation of Nepalese Chamber of Commerce and Industry (FNCCI) is thankful to Finance Minister Shanker Koirala who announced a full -fledged budget of Rs 517.24 billion for the year 2013/14 which will stimulate the national economy. The budget speech set priorities as per recommendations from different quarters and the government has accepted the private sector as a backbone of the economy. The federation also praised the budget for providing more funds to ‘One Village, One Product’ and ‘One District, One Product’ programmes promoted by FNCCI. 

 

Though the budget has given priority to the development of infrastructure and hydropower along with power transmission line, it lacks incentives for export-oriented industries and substantial programmes to address the existing energy crisis, said the key speakers at a press meet organized by FNCCI. The apex body of the Nepali private sector has said that though the budget holds good long- term programmes for energy supply, it does not encourage private power producers to address energy crisis in the short term. 

 

FNCCI also expressed its dissatisfaction on the government’s lack of attention on export promotion and import substitutions. The body had urged for reimbursement from the government of VAT paid by private power producers and for reviewing the PPA rates. The government, however, has remained silent in meeting these demands. It has also remained silent in channeling remittance money for hydropower projects, complains FNCCI. Overall, the FNCCI is quite positive regarding the budget and has stated that proper implementation of the budget is the main challenge for government.

 

‘CNI Sees Budget as Positive’ 

 

The Confederation of Nepalese Industries (CNI) has welcomed the budget of FY 2013/14 terming it encouraging to the country’s economy. The CNI praised the budget for addressing many of the demands of the private sector. The confederation also thanked the government for introducing a private-sector friendly budget. It is optimistic regarding the budget as besides being focused on holding the election to the Constituent Assembly, the government showed concern towards investment promotion, industrial infrastructure development, resolution of power woes, export promotion and the development of industrial estates and special economic zones (SEZs) with the aim of speeding up economic growth. The CNI, however, expressed its dissatisfaction for the government not paying attention to ease the immediate energy shortages.

 

Budget Tries to Address Private Sector’s Demands: BiCCI 

 

According to the Birgunj Chamber of Commerce & Industry (BiCCI), FY 2013-14 budgets has addressed the demands of the private sector. The budget has tried to give a proper direction to economic policies. As the government was not able to bring full-fledged budgets on time, there is hope from the current budget which is brought in time. The BCCI welcomes the decision of the government to honour investors who invest Rs 1 billion, to give continuity to Integrated Check Post (ICP) construction in Birgunj and generation of hydro electricity and development of transmission lines. 

 

BiCCI has also welcomed that the government has also included in the budget funds for the construction of Birgunj- Pathlaiya six-lane highway, the establishment of Kathmandu-Terai fast track. Nevertheless, the budget is silent on the issue of increasing trade deficit and disequilibrium in imports and exports, as it focuses mainly on imports rather than exports. The government also did not address the demand of concession in VAT for domestic industries.

 

‘FNCSI Expresses Satisfaction at the Budget’

 

Federation of Nepal Cottage and Small Industries (FNCSI) considered the budget to be quite satisfactory because it has addressed the needs and demands of the private sector. The budget has also included the suggestions of industrial sectors which is quite encouraging, says FNCSI. Similarly, it has included plan to prepare the industrial profile of all 75 districts, constructing a new exhibition centre in Kathmandu and international level industrial and trading exhibition centres in Chobhar. The budget gives priority to creating an investment-friendly environment and includes constructing the Nepal Industrial Center in Kathmandu with the cooperation of the government and the private sector. Similarly, it prioritizes in establishing an auction house in Nepalgunj for herbs and a tea auction house in Illam and gives importance to the agriculture and energy sectors. The government aims to make Nepal a developing country along with attaining high economic growth by 2022. The FNCSI has also pointed out the negative points of the budget including ensuring financial access for micro, cottage and small industries. The budget did not introduce clear policies and programmes for increase in export, import substitution and the promotion of micro, cottage and small industries to control trade deficit. The budget did not work on the suggestions given by FNCSI for the promotion and development of micro, cottage and small industries, says FNCSI.