Businesses in east worry about budget implementation

Industrialists in the eastern region of Nepal have said that though the budget for fiscal year 2078/79 that was announced by the government recently is good they are worried about the implementation aspect. They mentioned this during a virtual interaction held between Society of Economic Journalists – Nepal (SEJON) and Chamber of Industries Morang (CIM).

Suyesh Pyakurel, President of CIM, mentioned that though the budget is good there are doubts on whether it will be implemented properly. He cited the example of a decision taken by the Cabinet on December 10, 2018, whereby it was announced that garment manufacturers would receive concessions on their bank loans and value added tax and that loans would be provided at a subsided interest rate. However, that has not yet been implemented.

Industrialists also stated that the government does announce concessions on various taxes but the process to avail those facilities is so cumbersome that no business person even bothers to avail them. They also mentioned that the private sector had requested the government to levy only 1 to 5 per cent tax on import of raw materials for the leather-processing industry but the tax is still between 4 and 30 per cent.

Similarly, Bhim Ghimire, Immediate Past President of Chamber of Industries Morang, said that the provision of a refund of the taxes levied on diesel that industries utilise in the budget is a very welcome move but doubted whether it would actually be implemented.

Meanwhile, Shekhar Golchha, President of the Federation of Nepalese Chambers of Commerce and Industry, mentioned that the federation was doubtful on whether the government would include their suggestions in the budget due to the impact of the coronavirus in the country. However, he said that a majority of the recommendations were included in the budget for next fiscal year. He added that he was positive that the facilities introduced by the government through the budget would be given continuity in the Monetary Policy of Nepal Rastra Bank.

On the occasion, Sishir Kumar Dhungana, Secretary at the Ministry of Finance, said that the government had already started work to implement the budget since May 31. He also said that a separate mechanism will be established to implement projects that are worth over Rs 5 billion. Dhungana added that the Finance Ministry has already delegated the authority to implement the programmes announced in the budget to the respective ministries.